From the market trading point of view, it can be seen as of recent that global crypto assets had developed so quickly, reaching about 200 billion US dollars in total value. Nevertheless, crypto assets are still in its infant stage of early infrastructural development as compared with traditional financial markets.
Hence, occurrences like exchange hacks and operation issues have caused investors’ confidence in centralized exchanges to be greatly damaged, because there are no form of assurances on their investment; this is where the insurance concerns set in.
What Insurance Covers Kucoin?
Dating back to April 20, 2020, the world’s largest private insurance brokerage company called Lockton got partnered with KuCoin. Via this partnership, KuCoin and this Onchain Custodian will conduct custody cooperation in terms of fund security to ensure the security of the crypto asset market infrastructure from various aspects such as rules, processes, and technologies. In addition, KuCoin had promised to continuously improve the security and compliance of crypto assets to create a safe trading environment for investors.
Furthermore, KuCoin had also joined forces with leading global security companies such as Chainalysis and global white hats to protect users’ crypto assets. You should also know that in 2019, KuCoin passed NCC encryption and application audits, as well as Lockton arranged crime insurance for Onchain Custodian’s crypto asset custody platform.
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Is Kucoin Legit?
KuCoin is a legitimate cryptocurrency exchange, which uses standard encryption, and at the same time offers two-factor authentication. The company as mentioned above also has an insurance fund that is designed to cover losses as a result of cybersecurity breaches; without any devastating effect on its users.
Has Kucoin Experienced any Cybersecurity Breaches?
In 2020, KuCoin experienced a form of hacking, of which there was a leak of the private keys associated with hot wallets. A number of cryptocurrencies were stolen, which include BTC and ETH, amounting to about $285 million.
Despite the incident, KuCoin was able to make recoveries through law enforcement and other exchange platforms, and also with $45.55 million from the companys insurance.
Ever since this incidence, KuCoin’s leadership had tightened security, having also partnered with the world’s largest private insurance brokerage company. Measures had also been put in place in redeploying hot wallets and updating risk management protocols.
How Secure is Kucoin?
KuCoin on security basis also had partnership with leading global security companies such as Chainalysis and global white hats to protect users’ crypto assets. The exchange also makes use of industry-standard security protocols to protect your accounts, coupled with the enablement to also set up two-factor authentication.
Though its non-licensed operation in the U.S means that there is no protection for U.S based users on cash deposits through FDIC-insured accounts, like you can get with Coinbase exchange for instance.
However, your assets are secured as you trade on KuCoin, with the exchange’s utilization of several layers of security which include micro-withdrawal wallets, industry-level multilayer encryption and dynamic multi-factor authentication.
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Bottom Line
It’s important to know that KuCoin is not regulated by any national licensing bodies, yet the exchange still has the insurance capacity that covers for its users and its own assets. Since its inception, its major concern had always been security, but specifically after the 2020 hacking incidence, KuCoin had significantly improved on insurance basis, assuring investors of a safe and secured trading environment.