KuCoin is a cryptocurrency exchange that allows users to sell and buy crypto and hold several digital currencies. However, not everyone is entitled to its features and full benefits. Some countries are exempted from trading KuCoin. Despite this limitation, many might ask the question – is Kucoin legal in the US? This article explores the trading limitations of KuCoin users in North America. We also look at some ways US residents can still use KuCoin.
Is KuCoin Allowed In The US?
KuCoin is available in many jurisdictions worldwide. However, the cryptocurrency trading platform is not permitted for residents in the USA and does not provide full services to citizens, which means it does not report to the IRS or SEC. This is because the U.S. government does not allow KuCoin due to regulatory compliance and legislative issues.
What that means is that, while US-based traders might be able to circumvent the registration process, their accounts will remain unverified. This inability to verify their account means that American traders will have limited access to several features on the crypto exchange. Some of these restrictions are:
- Cannot perform KYC verification.
- Can only withdraw up to 1 Bitcoin every 24 hours.
- Denied access to advanced trading features such as Futures or margin trading
Why Was KuCoin Banned in the US?
Like most countries, the United States has several regulations in place regarding digital currencies and exchanges. The implementation of strict securities laws and the regulation of futures trading and margin trading have a significant impact on the business operations of the trading platform, leaving KuCoin exchange no choice but to exit the US market. While some other major crypto exchanges like Coinbase and Gemini abide by these regulations, they are also restricted in the services they can offer US citizens.
Moreover, the SEC has also pushed the crypto market and some of its assets to be regulated as securities. This was proposed with the clause that businesses that do not comply will remain unlicensed in the U.S.
How To Use KuCoin In The USA?
It is possible to trade on KuCoin from the USA by using a VPN. The IP address will need to be set from a country that is not a restricted country. As basic crypto-to-crypto trading can be performed without KYC requirements, individuals can create an account but will be limited to a maximum withdrawal of 2 BTC per day.
To use KuCoin in the US, follow these basic steps:
- Download a VPN Service. The first step is to download VPN software. Once the download is complete, install the software, create a new account, and sign in. Connect from a country that is supported by KuCoin.
- Create an account. Visit the KuCoin website and click on the ‘Sign Up’ button. Input the email address and password and click the ‘Create Account’ icon to proceed to the next stage.
- Deposit cryptocurrency. Transfer crypto from an external wallet or platform to KuCoin for trading. Tap on the ‘Deposit’ button and select ‘Crypto.’ Select the crypto to be deposited and copy the wallet address. Insert the copied wallet address into the recipient address bar in the external wallet and how many coins are to be transferred. For a full tutorial on how to send crypto, read this guide.
- Begin trading. Type the ticker symbol of the required asset in the search bar and select a preferred trading pair. Insert how much of the asset to purchase and click on the ‘Buy’ button to complete the transaction.
Disclaimer: It should be noted that accessing KuCoin from a restricted country (via VPN) breaches the Terms of Services, and the account can be suspended including any assets held within a KuCoin wallet.
Alternatives To KuCoin For The US
There are several alternative crypto trading platforms to KuCoin that are legal to use in the US. The best options based on our reviews include:
- Binance US. This platform offers excellent trading features such as margin trading, spot, and derivatives trading with assorted trading pairs. It is also a great cryptocurrency exchange with relatively low trading fees, low withdrawal fees, fast transaction processes, a large list of supported assets, and its native BNB token.
- Coinbase. A safe and regulated exchange in the United States that is listed on the NASDAQ. Coinbase's main platform is designed with beginners in mind with an easy-to-use mobile app. However, be prepared to pay higher fees. Read this KuCoin vs Coinbase article for more details.
- Kraken. One of the few crypto exchanges offering margin trading in the US. The platform is licensed in the U.S. and offers low withdrawal fees, which are complemented by low trading fees (0% to 0.26% per trade). For more information, read our KuCoin vs Kraken comparison.
- Uphold. For those looking to trade legally in the U.S., Uphold has great trade features with a growing list of supported countries and low withdrawal fees. Uphold stands out from other exchanges since it supports traditional assets (stocks, commodities, indices, etc.).
|Exchange||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
|Trade $100 and Earn $10||Visit Binance.US||Binance.US Review|
|241||0.4% (maker), 0.6% (taker)|
|$5 BTC bonus (USA only)||Visit Coinbase||Coinbase Review|
|222||0.16% (maker) and 0.26% (taker)|
|None available at this time||Visit Kraken||Kraken Review|
|None available at this time||Visit Uphold||Uphold Review|
Frequently Asked Questions
Strictly speaking, Americans are not allowed to use the KuCoin platform as it's against the Terms of Service. However, individuals can bypass the country restrictions using a VPN to access basic trading on KuCoin but are limited to spot markets with limited withdrawals. Individuals that choose to bypass this using a VPN, do so at their own risk and will need to file their crypto taxes on their own.
The exchange is not allowed in the U.S. because KuCoin is not licensed in the U.S. As a result of these, American traders who register on KuCoin can't operate verified accounts. They're limited to accessing a restricted portion of the platform.
Withdrawals for US residents that choose to use a VPN to access KuCoin will be limited to 1-2 BTC every 24 hours (this is dependent on the current price of BTC at the time of withdrawal). Therefore, knowing how much to withdraw and keep within that limit is important. When these criteria are met, U.S. users should have no issues withdrawing their funds. In accounts with restrictions like those mentioned above, there are limits to withdrawals, and withdrawal fees may vary based on the network and withdrawal method.