KuCoin CEO BC Wong issued a rare open letter this week calling on the cryptocurrency industry to raise security standards and rebuild user trust.
The message comes as crypto exchange KuCoin launches a $2 billion Trust Project aimed at reinforcing transparency and positioning itself as a leader in compliant infrastructure following five years of internal development.
Major Investments in Security and Transparency
The Trust Project will finance a series of upgrades to KuCoin’s security infrastructure, including advanced security systems, AI-driven threat detection, and real-time proof of reserves using blockchain technology.
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KuCoin’s native token, KCS, will play a key role in governance and rewards as part of the Trust Project, encouraging community participation in shaping platform development.
Wong highlighted KuCoin’s implementation of a zero-trust security architecture and strengthened data privacy protections designed to safeguard user assets.
The exchange has also built a highly redundant infrastructure to ensure continuous, 24/7 operation, meeting the demands of cryptocurrency trading.
KuCoin now holds both SOC 2 Type II and ISO 27001:2022 certifications, placing it among a small group of exchanges with multiple high-level security accreditations.
Navigating Regulatory Challenges
Serving over 41 million users worldwide, KuCoin faces a tougher regulatory environment.
In early 2024, KuCoin faced U.S. charges for operating without licenses, handling $5 billion in suspicious transactions, and concealing U.S. customers. The New York Attorney General also forced KuCoin to stop operations in the state, refund investors, and pay penalties.
In January 2025, KuCoin pleaded guilty to operating an unlicensed money transmitter, agreed to leave the U.S. market for two years, and paid $297 million in fines and restitution.
The exchange is currently pursuing a Markets in Crypto-Assets Regulation (MiCAR) license in the European Union, signaling efforts to expand its regulated footprint. KuCoin already holds five licenses across other jurisdictions.
Since 2020, KuCoin has heavily invested in cutting-edge security infrastructure, including advanced key management and rigorous data privacy protocols. In 2022, the exchange launched its Proof of Reserves initiative, enhancing transparency and trust.
A Call to the Industry
Beyond its own platform, KuCoin’s CEO issued a call to the entire crypto industry to prioritize security and transparency.
Wong emphasized that cryptocurrency’s potential to transform finance and empower users globally depends on the sector’s collective dedication to innovation, accountability, and user protection.
“The potential of cryptocurrency to transform finance and empower people globally depends on our shared dedication to transparency, innovation, and accountability,” Wong wrote.
Why This Matters
As major exchanges compete to rebuild credibility in the wake of past collapses, KuCoin’s move may set the tone for a new wave of public-facing, audit-ready initiatives.
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People Also Ask:
The Trust Project is a $2 billion initiative launched by KuCoin to enhance platform transparency, improve security infrastructure, and rebuild user confidence.
KCS will be used for governance and community rewards, encouraging user participation in platform development and oversight.
KuCoin is certified with SOC 2 Type II and ISO 27001:2022, placing it among a limited number of exchanges with top-tier security credentials.
