KuCoin review - global exchange with growth and scars from hacks and regulation

How it began

KuCoin opened in 2017, launched by a small team determined to make trading open for all. The timing was perfect - the ICO boom, Bitcoin's rise, altcoins multiplying. KuCoin seized the wave. Within two years, it was a familiar name in trading chats and crypto forums, known for low fees, broad token listings and a sleek interface. While Binance raced ahead, KuCoin became a destination for altcoin hunters.

What it built

KuCoin grew far beyond spot trading. It rolled out margin, futures and options, plus P2P fiat desks, staking and lending markets. By 2022, it offered over 1,200 pairs. Its KCS token tied everything together with fee rebates and daily rewards. At peak, KuCoin claimed 40 million users across 200 countries, handling billions in daily volume. It earned the nickname "the people's exchange" for its wide range of tools and early listings.

Cracks in the armor

In 2020, a hack drained $280 million. Most was recovered, but concerns about custody lingered. Then in 2025 came a harsher blow: U.S. prosecutors fined KuCoin nearly $300 million for AML failures and unlicensed operations. U.S. operations shut down, founders stepped aside, and trust in Western markets plummeted.

What works today

Outside the U.S., KuCoin remains strong. Spot and derivatives still move billions daily. Fees are low - 0.1% on spot, 0.02%/0.06% on futures. Liquidity is deep for majors and plentiful for altcoins. KCS token continues to power perks, while KuCoin publishes proof-of-reserves and holds security certifications to rebuild trust.

Strengths & weaknesses

Strengths	Weaknesses
Global scale with tens of millions of users. Diverse product suite - spot, futures, margin, options, staking, lending. Deep liquidity for major pairs and wide altcoin catalog. KCS token offers strong utility and rebates. Proof-of-reserves and multiple security certifications.	Regulatory collapse in the U.S. with heavy fines. 2020 hack left long-term scars on trust. Complex platform may overwhelm beginners. Reliance on KCS for loyalty and engagement. Trust gap persists in Western regulated markets.

Final word

KuCoin remains a heavyweight in crypto trading. It built a reputation on altcoin listings and expanded into nearly every product. Yet it carries scars: a major hack, compliance failures and a U.S. shutdown. For global users, it still offers deep liquidity and a vast toolkit. For Americans, it is off-limits. The question now is whether KuCoin can rebuild trust and return to regulated markets. For now, it thrives abroad but is sidelined in the U.S.

KuCoin - Exchange Review