Johnny Lyu discusses KuCoin's recent success with Invezz

KuCoin is going to adjust the max leverage limits on the platform in the coming few weeks. According to its CEO, this is essential to sustain the healthy growth of the crypto industry. Invezz talked to Johnny Lyu about the secret of his exchange’s success, the leverage limit adjustment, and the regulatory crackdown on exchanges.

8 million registered users

The total number of registered users on KuCoin has reached 8 million, showing that as a global cryptocurrency exchange, KuCoin is benefiting from tremendous momentum. In fact, KuCoin was on Forbes Magazine’s list of the best crypto exchanges in 2021.

Over 400 coins have been listed on KuCoin and the exchange supports over 800 trading pairs. A number of projects, like ICP (ICT/USD), BOSON, AERGO, RNDR and DAO (CRV/USD) had primary listings on KuCoin. All of this has contributed to KuCoin’s becoming a leading altcoin exchange worldwide. Lyu, commenting on the company’s recent success, told Invezz:

It reflects that as a global cryptocurrency exchange, KuCoin is welcomed by more and more cryptocurrency investors, which absolutely demonstrates that as “People’s Exchange”, we are moving faster and further.

Top futures trading platform

KuCoin Futures was launched in August 2019. Since then, it has become one of the top 10 global Futures trading platforms. It supports contract products of over 60 cryptocurrencies and has more than 3 million registered users.

KuCoin has established 19 local communities in North America, Europe, SEA, and other regions, providing users with 24/7 multi-language customer services and highly localized services. KuCoin Futures supports 13 languages to facilitate easy trade for global users. The exchange launched the industry’s first LITE version of the Futures platform to help many novice users easily experience Futures Trading. They have published various tutorials to lower the threshold of Futures trading and onboard users.   

Adjusting leverage

On adjusting leverage limits, KuCoin’s CEO said:

The maximum leverage rate of KuCoin Futures will be reduced to 20x. Compared with the Spot market, the Futures market brings greater benefits while also creating higher risks. Adjusting the leverage of Futures is to further protect the rights and interests of users, which is in line with regulatory requirements as well.

Consumer protection is at the root of industry-wide initiatives to lower leverage. According to Lyu, a sharp reduction in the leverage ratio can not only lower the risks for users but entice more users to try Future services. A reasonable leverage rate is “much easier” to comprehend and more likely to change stereotypes on the crypto world, the CEO said.

Regulatory crackdown on Binance

As global policy on the industry tightens, KuCoin stays attentive to regulatory trends in different regions for compliance operations. The CEO said that a regulatory crackdown against Binance is an “alert to other exchanges.” Lyu said that his company is registered in the Republic of Seychelles and is “following local regulations.”