If you're someone who wants to start trading cryptocurrencies, you probably included KuCoin among the list of choices. If you want to know more about this trading platform, one of the first things you may ask is its location. Thus, you may ask:
Where is KuCoin based? KuCoin is a cryptocurrency exchange based in Hong Kong. It is a third-party exchange that allows you to trade different cryptocurrencies. It was started in May 2017 by a group of experienced business specialists. Due to its location, you probably wonder if it's safe and secure.
In this article, you will have all the information you need to decide whether KuCoin is suitable for you.
Without further ado, let's get into it!
Where is KuCoin Exchange located?
One of the first things we consider with an exchange is its location. The reason is that exchanges are none other than centralized locations.
As a result, all exchanges are subject to the laws and regulations of their location.
For instance, KuCoin is a cryptocurrency exchange based in Hong Kong. Thus, it runs under the regulation of Hong Kong's laws regarding such matters.
With this thing in mind, it can be a problematic experience if you live in other countries like the US.
Since it has different regulations, you may also experience regulations from a different country if you plan on pushing through with it.
Still, in its essence, KuCoin is a third-party exchange that allows you to trade different cryptocurrencies.
Now, you may also ask about the owner or founder of this cryptocurrency exchange.
Who owns KuCoin?
Michael Gan is the KuCoin CEO. Further, the exchange's founders are notable and experienced business specialists.
In general, we can sum up the list with the following persons behind KuCoin:
- Michael Gan (CEO)
- Eric Don (COO)
- Top Lan (CTO)
- Kent Li (Operations and Maintenance Director)
- John Lee (President of Business Operations)
- Jack Zhu (Marketing Director)
- Linda Lin (Chief Legal Consultant)
The goal of the founders was simple. It is to create a simple and safe platform for people worldwide to trade a range of digital coins.
In the long run, they want to be one of the 10 top largest exchanges globally, and they hope to achieve this by 2021.
Since the exchange's launch, it has not experienced any significant problems. Further, the exchange does not suffer from any system overloads.
Another thing to note is that the exchange is now accessible through a desktop computer. It also now has a KuCoin app on both Android and iOS.
Can US citizens use KuCoin safely?
Although based in Hong Kong, KuCoin doesn't close its doors to foreign investors. Thus, any US citizen can trade in it.
Still, if you're planning to do so, it would be best always to analyze yourself.
Try to determine whether your home state imposes any obstacles. This way, you can avoid problems regarding your foreign cryptocurrency trading.
By far, the exchange has one of the world’s most impressive trading pair selections. Further, it has more than 300 trading pairs.
The exchange also claims to have the most advanced API on the market. Thus, it's a promising platform for every investor.
Another thing to note is that the exchange has so-called KuCoin Shares (KCS).
For instance, any KuCoin shareholder can receive cryptocurrency dividends daily.
They can also receive trading discounts and even lower withdrawal fees than otherwise.
Lastly, the exchange also states that KCS-holders receive a lot of benefits. Among these are exclusive promotions, offers, and rewards.
How is KuCoin used in the USA?
KuCoin is not a US-based exchange. Thus, if you plan on investing through it, you may need to include it in your FBAR filing.
In general, you can use KuCoin in the USA, and you'll need to do the following things. It's almost the same except for the FBAR filing.
Put funds in your main account
You can put funds in your main account by purchasing crypto with a credit card. Or, you can also send crypto from another source to your KuCoin wallet.
Send the funds to your trading account
Once you have funded your main account, you can start sending funds to your trading account.
As soon as you have a fund in your trading account, you can start trading. You can also do the process in reverse if you want to withdraw.
Does KuCoin report to IRS?
Since KuCoin is not a US-based exchange, it differs when it comes to IRS. Still, if you receive a Form 1099-K or Form 1099-B, it means the IRS knows that you have reportable cryptocurrency transactions.
US-based exchanges do report to the IRS. Among these are Coinbase, Kraken, Binance, Gemini, and Uphold.
If you need to report all your capital gains and losses, you need to complete IRS Form 8949. This form tells each of your cryptocurrency taxable events.
KuCoin offers quite a lot of benefits for investors in all countries. Still, since it's not a US-based exchange, you may want to be a little bit more careful.
While KuCoin offers plenty of benefits, you still need to be aware of the risks it involves, especially since it's not a US-based exchange.
An intelligent investor should always learn everything he needs to know in a platform before diving into it deeper.