KuCoin Advises Chinese Customers to Move Assets Amid Crackdown
The latest in a recent spate of exchange activity involving Chinese mainland users sees KuCoin removing Chinese users from its database. KuCoin advises them to move their assets elsewhere by 31 December 2021.
KuCoin, one of the world’s largest centralized exchanges is offloading Chinese users from its platform to comply with the Chinese central bank’s new policies, after an examination of its business processes in the light of the new policies. To preserve the safety of customer assets, KuCoin urges customers to withdraw their assets before midnight on December 31, 2021. It is up to the customers to initiate the withdrawal process. They have announced that they will continue to remind people about this via their email system and insider letters. They have offered online and telephonic assistance to affected customers.
KuCoin follows other centralized exchanges popular amongst Chinese mainland users, like Huobi and Binance, who, since the announcement by China, have blocked new users from mainland China from registering on their platform. Huobi exchange is set to clean up existing users by the end of the year.
DEXes are flourishing despite ban
It seems like decentralized exchanges, which do not have a single controlling entity, have been flourishing recently, despite the Chinese crackdown, which primarily targeted centralized exchanges’ operations. The DEX dYdX experienced trading volume of $4.3B between September 26-27, 2021.
KuCoin’s place in the centralized exchange space
KuCoin was founded in 2017. KuCoin’s main base of operation is Singapore, which is a crypto-friendly region, with both Binance and Huobi doing successful business there. KuCoin has over 400 cryptocurrencies listed in over 400 markets. It also allows users to enable two-factor authentication to improve security. Even though Binance is the world’s largest centralized exchange, it is estimated that 1 in 4 cryptocurrency users are registered on KuCoin. KuCoin losses through cyberattacks are covered by an insurance fund, all but guaranteeing that users are compensated for lost assets.
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