KuCoin's Nine-Year Evolution Reflects Industry Shift Towards Trusted Infrastructure
KuCoin, a cryptocurrency exchange that launched in 2017, has managed to survive and expand its services despite the high failure rate of exchanges during this time period. The exchange has added features such as futures and margin trading, institutional custody, a public chain, earn products, and an on-chain wallet.
The CoinGecko report highlights KuCoin's shift from trade execution to trusted infrastructure, but notes that the timing of this shift is questionable given the exchange's past issues with US anti-money laundering violations. In 2024, KuCoin pleaded guilty to these violations and agreed to pay nearly $300 million in fines and forfeiture.
The report also notes that volume alone no longer commands valuation or user loyalty. Exchanges must now control more of the stack, particularly when it comes to custody and settlement infrastructure. KuCoin's push into on-chain services and custody is both defensive and opportunistic in this context.
Regulatory reality remains a challenge for exchanges with enforcement histories. While KuCoin has adjusted its KYC policies and continues to operate globally, the US regulatory environment remains hostile. The next wave of institutional capital demands regulatory certainty, and exchanges must meet compliance standards without alienating their user base.