How KuCoin Sets a New Standard for Exchange Security Through

Compliance and Proof of Trust

Chainalysis reported that over $2.17 billion in digital assets were stolen in the first half of 2025, of which approximately 69% were linked to incidents on centralized exchanges. After years of such incidents, the industry has learned the hard way that trust cannot be declared, but must be proven.

As regulatory scrutiny intensifies and institutional participants demand transparency, exchanges are adopting verifiable security models. This shift is moving away from the "trust us" era and toward a framework where controls, reserves, and risk systems can be independently tested, audited, and verified.

KuCoin demonstrates how exchanges are transforming regulatory pressure into measurable security frameworks.

KuCoin's Certifications Turn Transparency into Proof

KuCoin has strengthened every layer of its security and transparency framework. The company restructured its core systems, revamped its wallet architecture, and integrated third-party audits into all operations, demonstrating its commitment to verifiable user security and long-term accountability. Its approach highlights how major exchanges may evolve as "certified transparency" becomes the new competitive norm.

Earlier this year at TOKEN2049 Dubai, KuCoin CEO BC Wong indicated that the industry is entering a new phase where launching exchanges quickly and making adjustments later is no longer sufficient. He emphasized that exchanges have become an essential financial infrastructure. It is crucial to cooperate with regulators from the outset and build trust between users and the entire financial ecosystem.

His comments reinforced the direction KuCoin was already working towards. Through its $2 billion Trust Project, the company has improved its security architecture, wallet infrastructure, and risk management systems over the past five years. This initiative was designed to transform transparency into an engineering principle rather than a marketing claim.

As part of this effort, KuCoin sought independent verification to prove that its controls, processes, and data security framework meet international standards. Each certification targets a different layer of trust.

KuCoin now holds four major international certifications, a combination that no other major exchange currently holds:

• CCSS (Cryptocurrency Security Standard) — a crypto-specific framework that verifies how private keys are generated, stored, and managed. KuCoin is the first top exchange to receive this certification.

• SOC 2 Type II — verifies that operational and security controls function effectively over time, not just at a single audit date.