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KuCoin — overseas unregistered crypto-asset exchange (Japan FSA warning)

Confidence: Likely Updated 2026-05-19 Review by 2027-05-19 Sources 3 Machine-translated Original (JA)
#fintech#jp-foreign-exchange#fsa-warned#unlicensed#kucoin
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This entry sits under exchanges index. Read it with FSA crypto-asset exchange registration system — number system / Local Finance Bureau jurisdiction / registration requirements for adjacent context and Japan Financial Regulation — Legal Framework for Tokens, Crypto Assets, and Payments for the broader system boundary.

No crypto-asset exchange business registration in Japan · FSA warning letter issued: 11 28, Reiwa 6 (2024-11-28) · JVCEA non-member

1. Corporate entity / shareholders

  • Brand name: KuCoin
  • Operating entity: Mek Global Limited (the principal operating entity, registered in Seychelles), as part of a complex structure spanning multiple overseas entities. Phoenix Capital Resources Ltd and others have been reported as affiliated entities, but the details of the group’s overall corporate structure cannot be confirmed in public materials.
  • Established: 2017年 (China)
  • Headquarters location: Republic of Seychelles (after relocating Hong Kong → Singapore in 2018年, then further relocating to Seychelles)
  • Shareholders / capital: an unlisted private company. In the May 2022 Series B round, KuCoin raised USD 150 million led by Jump Crypto at a valuation of about USD 10 billion. SIG (Susquehanna International Group) also invested USD 10 million in July 2022.

2. License / registration status

  • Japan crypto-asset exchange business registration: none (unregistered)
  • Japan FSA warning letter: issued 11 28, Reiwa 6 (2024-11-28). The Financial Services Agency published a warning letter, designating it an “unregistered overseas-located operator.” Warning-letter material: kucoin_keikokushiryo.pdf (posted on the FSA site)
  • JVCEA member: non-member
  • United States: not brought under NY State Attorney General regulation (ceased crypto-asset business in NY pursuant to a 2023年12月 settlement). Prohibited from servicing US customers under FinCEN rules.
  • EU: at 2026年2月, the Austrian FMA issued an order prohibiting new business against KuCoin EU Exchange GmbH (on grounds of breach of AML and financial-sanctions compliance obligations).

3. Supported currencies

  • Not disclosed (Japanese could not be confirmed in official IR materials)
  • Globally it claims to handle over 700 coins, and is known for broadly covering small- and mid-cap altcoins in addition to major coins such as BTC and ETH.
  • Native token: KCS (KuCoin Token) — the exchange’s native token. It has uses such as fee discounts and staking-yield distribution.
  • KuCoin Community Chain (KCC): operates its own EVM-compatible chain based on KCS.

4. Scope of business

  • Spot trading / margin trading / derivatives (futures, perpetual swaps) / P2P trading / crypto lending / Staking / NFT marketplace
  • Fiat deposit channels: credit card, bank transfer (limited supported regions)
  • KuCoin Earn: a yield-earning service for depositing crypto-assets

5. Market share / trading volume

  • Not disclosed (Japanese IR materials could not be confirmed)
  • In the global market, on external data such as CoinMarketCap, it had sustained periods of holding top-10 -class trading volume, but following the US regulatory issues from 2024年 onward and the founders’ arrests, fluctuations in outflow counts and turnover have been reported.
  • Customer base: predominantly global retail. It also offers services for institutional investors.

6. History / major events

PeriodContent
2017Founded in China. Established by Chun Gan, Ke Tang, and Johnny Lyu (3名). Raised 5,500 BTC (worth approx. $2,750万 at the time) via ICO
2018-11Raised USD 2,000万 in a Series A led by IDG Capital, Matrix Partners, and Neo Global Capital
2018Relocated headquarters Hong Kong → Singapore (against the backdrop of tightened crypto-asset regulation by Chinese authorities)
2020-09Large-scale hack occurred: crypto-assets worth USD 2億8,100万 stolen from hot wallets (the Lazarus Group = North Korea-linked hacker group is presumed to have been involved). Ultimately recovered approximately 78% (USD 2億2,200万)
2022-05Raised USD 1億5,000万 in a Series B led by Jump Crypto. Valuation USD 100億
2022-07Additional investment of USD 1,000万 from SIG
2023-12Settlement with the NY State AG: a settlement of USD 2,200万 (penalty + refunds) with the New York State Attorney General. A settlement of the claim that it had operated unregistered as a securities/commodities broker. Ceased trading operations in NY State
2024-03Founders Chun Gan and Ke Tang federally indicted. Charges of operating an unlicensed money-transmitting business and AML violations (US District Court, Southern District of New York). Johnny Lyu was not among the indictment targets at that point
2024-11-28Financial Services Agency (FSA) issues a warning letter: warned as an unregistered overseas operator for providing services to Japanese residents without crypto-asset exchange business registration in Japan (dated 令和6年11月28日)
2025-01Final settlement with the US DOJ and FinCEN: KuCoin entered a guilty plea and agreed to pay approximately USD 2億9,700万 in penalties/forfeiture for violating the Bank Secrecy Act. Servicing US customers was prohibited under FinCEN rules. The founders 2名 remained pending outside the settlement framework
2026-02Austrian FMA issued an order prohibiting new business against KuCoin EU Exchange GmbH. On grounds of breach of AML obligations and financial-sanctions compliance

7. Strategic developments

  • At 2025年4月, concluded a partnership with ERX Company Ltd., under the supervision of Thailand’s SEC, and opened “KuCoin Thailand” (started 2025-04-22). A move to secure access to within-regulation markets in Southeast Asia. A comparison of those dated the same day as the FSA warning is in Bybit / Bitget / MEXC; see FSA warning-letter issuance system for unregistered foreign crypto-asset exchanges (2018-2025) for the overall picture of the warning regime.
  • It professes strengthening of its global compliance framework and is said to be advancing reconstruction following the DOJ settlement (specific content unconfirmed beyond official PR).
  • Continues to focus on the DeFi ecosystem via KCC (KuCoin Community Chain).
  • Chun Gan: co-founder. Federally indicted at 2024年3月 (AML violation, unlicensed money-transmitting business).
  • Ke Tang: co-founder. Same as above.
  • Johnny Lyu: co-founder and former CEO. Active as the face of the company, including issuing official comments in response to the 2020年 hack. On Wikipedia (as referenced at 2026-05-19), the CEO is listed as BC Wong, and Lyu’s current position cannot be officially confirmed.
  • BC Wong: the current CEO per Wikipedia (as referenced at 2026-05-19; confirmation in official IR not obtained).

Sources