Zulqarnain Bhai

KuCoin cryptocurrency exchange launches its $2 billion Trust Project to advance security, enhance trust and boost innovation across its platform. 

The “fund” aims to secure KuCoin Exchange from potential threats and hacks, providing a secure, reliable space for all traders. 

In an open letter to KuCoin users, BC Wong, CEO of KuCoin Exchange, unveiled its $2 billion Trust Project, marking a new era in the company’s quest to protect users’ funds, enhance trust and mitigate any security risks such as hacks and theft. In his statement, Wong believes the huge “security fund” will enable KuCoin to provide users with a secure, reliable space where they can trade with confidence, especially following the constant security hiccups crypto exchanges have faced since early 2022. 

Terming the launch of the Trust Project, KuCoin’s “boldest move yet”, Wong shared.

“Today, with the support of over 41 million users around the world, KuCoin represents the strength of innovation and integrity. The $2 billion Trust Project is more than a technological investment—it’s a promise to you, our users, and to the future of cryptocurrency. Now, we look to the future, where trust is more than a word; it’s the foundation of everything we do.”

According to the statement, the Trust Project will be geared towards leveraging AI to identify risks and security concerns before they happen. The next generation project will combine AI to identify risks before they arise, and blockchain technology to offer real-time transparency of reserves. This is expected to not only respond to threats but also keep users’ funds safe from future attacks. 

A Half-Decade Championing Trust and Security

KuCoin Exchange came to the limelight in 2020, offering users a wide range of crypto trading pairs and futuristic services in the space. While their competitors focused mainly on adding to their user base through new products and assets, the exchange focused on building a secure and trustworthy environment for their global community.

“Over these five years, we’ve invested heavily in cutting-edge security infrastructure, protecting your assets and data through rigorous protocols and advanced technologies,” Wong wrote in his letter. 

This was crucial in protecting the exchange during the avalanche of hacks and failures that rocked the crypto space following the failure of FTX Exchange (the then 3rd largest crypto exchange) in 2022. KuCoin was able to respond proactively, enhancing transparency and accountability to better protect users’ interests. 

“Subsequent challenges only reaffirmed the importance of robust security measures, encouraging the entire industry to prioritise transparency and invest in stronger safeguards,” Wong added. 

In 2022, KuCoin launched its Proof-of-Reserves (PoR) initiative that enhanced users' trust in the exchange’s willingness to protect their funds. The constant security-led focus on the exchange earned KuCoin SOC 2 Type II Certification as well as the ISO 27001:2022 certifications. This places KuCoin among the most secure global platforms, meeting the highest international standards.

Notwithstanding, KuCoin also boasts five regulatory licences across the globe and is pursuing a MiCAR license in Vienna, Austria, to further ensure compliance and transparency, while expanding its global reach.

Security As The Bedrock of KuCoin

According to Wong, KuCoin’s main mission is to provide users with unwavering and comprehensive security standardisation. The exchange accomplishes this by empowering the team to tackle risks, including sophisticated threats like advanced persistent threats (APTs). Additionally, the exchange employs a zero-trust architecture that ensures every access request is verified, leaving no room for vulnerabilities. Sensitive data privacy protections keep users’ personal information safe under the highest standards, while high-security key management devices shield encryption keys, strengthening their overall defences.

Moreover, Kucoin also has in-built redundant systems within its infrastructure and operations that ensure reliability even under pressure. It also maintains a round-the-clock maintenance on its platform to prevent any downtime on trading, making continuous operations especially critical in the Web3 industry.

Finally, the trading system introduces forward-thinking features, such as raft replay capabilities, which support comprehensive future audits. In addition to internal reviews, KuCoin also undergoes independent third-party audits. This approach ties together security, stability, and transparency into a seamless promise: a platform users can rely on, built from the ground up with their trust in mind.

Enhancing Crypto Security Via Collaboration

Adding to the extensive security measures that KuCoin employs, Wong also called for collaborative measures across the industry to raise security standards and rebuild trust. He believes the wider crypto industry has to work together to ensure a collective safe space for all users. 

“The potential of cryptocurrency to transform finance and empower people globally depends on our shared dedication to transparency, innovation, and accountability,” Wong stated on the value of collaboration across the crypto field. “We urge our industry peers to join us—invest in cutting-edge security, prioritize user protection, and help lay a stronger foundation for the future of crypto.”

Lastly, the prevalence and growth of the KCS token (KuCoin’s native token), also enhance users’ participation in the governance and future of the project, giving them a voice on how security is handled across the platform. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.