Is it possible for Japanese people to use KuCoin for transactions? Has it been stopped? We will provide a thorough explanation of the relationship with Japan’s Financial Services Agency. KuCoin has users all over the world, with 8 million users transacting daily in Asia, Europe, America, South America, etc. Therefore, it is a virtual currency exchange that has successfully expanded globally.
- KuCoin basic information, company information
- Is it possible for Japanese people to use KuCoin?
- Why not register with the Japanese Financial Services Agency?
- How to open a KuCoin account
KuCoin basic information, company information
KuCoin is a virtual currency exchange established in Hong Kong in 2017. When you think of China, you can’t get rid of the suspicious impression, but we are currently moving our base to Seychelles, East Africa. Therefore, it can be said to be a very safe exchange. The number of currencies handled is over 600, and the maximum leverage is 100x, so the scale of the operating company is large. Because we are expanding globally, we are a top-class exchange and support languages such as English, Japanese, Spanish, and French. The base currency is BTC (Bitcoin).
|number of virtual currencies
|Maker fee: 0.1%
Taker fee: 0.1%
Deposit and withdrawal fees: Free
|Minimum transaction amount
|Deposit and withdrawal methods
|Bank cards and accounts, cryptocurrency and electronic wallets
have a financial license
KuCoin was fined by the Seychelles Financial Services Authority, FSA, for operating without a license. Since then, KuCoin has firmly obtained the FSA license and is therefore regulated. Therefore, it can be said that it is very safe and reliable. Trader client assets are now fully protected, of course. KuCoin has established an audit department and is focusing on security.
Huge amount of hacking in the past
KuCoin was hacked in 2020, resulting in an incident in which 200 million dollars of funds were illegally leaked. Although we were hacked, we have responded quickly and strengthened our security system, making it extremely safe to use. Two-factor authentication is always required for registered users. Funds are securely managed on the wallet page.
The number of users is large worldwide
The following is a quote from TradersUnion, a review site for major overseas virtual currency exchanges. Users are mainly from the United States and India, but there are also many from Japan and Canada. In addition, there are many users in Mexico and Venezuela in Central and South America.
Source : TradersUnion
Is it possible for Japanese people to use KuCoin?
Japanese people can use KuCoin for transactions. However, in the case of overseas virtual currency exchanges, this kind of topic does not come up. Why is that? This is because of the following reasons.
Suspension of services for residents of Japan
KuCoin stopped its services for residents of Japan in 2018. As a result, it became said that Japanese people could not use it. However, services to Japanese people have not been suspended. Although it is possible to trade even if you are a resident of Japan, you can do so at your own risk. However, in the case of Japanese people, it is difficult to pass the KYC inspection for identity verification.
Not approved by the Financial Services Agency
KuCoin is licensed and regulated by the Seychelles Financial Services Authority. However, in Japan, we do not hold a license from the Financial Services Agency. In other words, KuCoin operates an unregistered crypto asset (virtual currency) exchange in Japan, which is not something that has been praised much.
Exclusion of foreign virtual currency exchanges continues
Japan’s Financial Services Agency has issued a warning against unregistered exchanges. In response, major exchanges such as Binance, BitMEX, and even Coinbase have withdrawn from Japan one after another. In other words, we cannot deny the possibility that KuCoin will follow a similar trend in the future.
Why not register with the Japanese Financial Services Agency?
Why is KuCoin not registered with the Japanese Financial Services Agency? Let me explain this.
Adoption of zero cut system
KuCoin uses zero cut. Zero cut means that if your account balance becomes negative due to a loss below the margin, you will be compensated with KuCoin and your account balance will be reduced to 0. Since there is no margin call, traders do not have to risk chasing debts. In other words, it is a very advantageous system for traders, but this zero-cut system cannot be adopted unless permission is obtained from the Japanese Financial Services Agency.
Maximum leverage 100x
The maximum leverage is 100x, allowing for quite high leverage trades. However, Japan’s Financial Services Agency only allows leverage up to 25x. From a trader’s point of view, high leverage is more advantageous because it allows you to earn more with less capital. For this reason, KuCoin is intentionally not registered.
How to open a KuCoin account