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 December 31, 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 keep clients ‘assets safe, KuCoin urges clients to withdraw their assets by midnight on December 31, 2021. It is up to the customers to initiate the withdrawal process. They announced that they would continue to remind people of this through their messaging system and insider letters. They have offered online and telephonic assistance to affected customers.
KuCoin follows other centralized exchanges popular among mainland Chinese users, such as Huobi and Binance, which since China’s announcement have barred new mainland Chinese users from registering on their platform. Huobi exchange is set to clean up existing users by the end of the year.
DEX blooms despite ban
It appears that decentralized exchanges, which do not have a single controlling entity, have flourished recently, despite the Chinese crackdown, which primarily targeted the operations of centralized exchanges. The DEX dYdX experienced trading volume of $4.3B between September 26-27, 2021.
The place of KuCoin in the centralized exchange space
KuCoin was founded in 2017. KuCoin’s main base of operations is Singapore, which is a crypto-friendly region, where Binance and Huobi do 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 largest centralized exchange in the world, it is estimated that one in four cryptocurrency users is registered on KuCoin. KuCoin losses through cyberattacks are covered by an insurance fund, all but guaranteeing that users are compensated for lost assets.
