Kucoin to charge Dormancy Fees on Inactive Non-KYC and KYB Accounts

[logfiles]

Are you a Kucoin account holder who hasn't used your Non KYC verified account for a while? Well, I did receive an email in my inbox, and it appears Kucoin is going to start charging a certain fee on dormant accounts that are not verified.

This is how the email reads



If you still have your funds in there, please move them.

[Charles-Tim]

According to my findings and which was also the link that you posted, the announcement has been existing since 21st May, 2025.

I guess those people that have not gotten verified on the exchange are sent this email to notify the people. Another example of not your key not your coin.

[God Of Thunder]

I have been using Kucoin for a few years, but am a KYC-verified user. Because of that, I probably haven't received any emails. They are just doing it so people do the KYC on their exchange and make some extra money. I don't see any reason why they would force people to verify their accounts. If I understand correctly, you are still safe if you are not KYC verified but are an active user.

This charge applies to inactive accounts. I feel bad for people who keep funds on Centralized exchanges and don't even bother to check their accounts once in a while. These people will start losing their money just because their account was inactive.

[Oshosondy]

If I understand correctly, you are still safe if you are not KYC verified but are an active user.

This charge applies to inactive accounts. I feel bad for people who keep funds on Centralized exchanges and don't even bother to check their accounts once in a while. These people will start losing their money just because their account was inactive.

Users that have not been verified on the exchange are likely not active on the exchange anymore than to leave their coins on the exchange if they have not withdrawn the coins. This is what I saw online about it:

Yes, KuCoin requires Know Your Customer (KYC) verification for almost all services, including deposits, trading, and access to new products, as of August 31, 2023, for new users. Users who registered before this date and haven't completed KYC can only sell crypto, close futures/margin positions, and redeem ETFs/KuCoin Earn assets, with no further deposits allowed.

I am very sure the sell there is not buy/sell in spot market.

[Upgrade00]

The crazy part of this, even accounts that they've blocked due to investigations or regulations still get charged for being dormant. The users cannot access their funds to move them and those funds are slowly depleted. The users can't confirm how much is being taken either.

This could be their target for implementing this, along with multiple accounts that are dormant with a $5 or less balance. I can imagine they'll have thousands of those just sitting around. This is their best approach to get their hands on those funds with little or no consequence.

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

[Die_empty]

The crazy part of this, even accounts that they've blocked due to investigations or regulations still get charged for being dormant. The users cannot access their funds to move them and those funds are slowly depleted. The users can't confirm how much is being taken either.

This is absolutely wrong. They are indirectly stealing from the account. Accounts that are under investigation should be exempted since it's not the user's fault that they become dormant.

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

I know that banks charge dormant accounts to cover the cost of maintenance. The exchange is keeping your account, even if it's dormant, you would have to pay for record-keeping and safekeeping. All these are ways of making more profit.

[Despairo]

It show they want to get the coins instead of fulfill their duty for regulation.

Kucoin have a good start and make people interested, but they're become ridiculous after many people use their exchange.

Fortunately I no longer use this exchange anymore, it's a good warning to other users who still use Kucoin. Nowadays better to avoid any CEX if people don't want to submit KYC because CEX without KYC in the present is no longer possible.

[Upgrade00]

I know that banks charge dormant accounts to cover the cost of maintenance. The exchange is keeping your account, even if it's dormant, you would have to pay for record-keeping and safekeeping. All these are ways of making more profit.

Why is it only applied on accounts that have not completed kyc? Dormant fees in banks are paid by all accounts and those are still rip offs as there's really no charge for record keeping or safekeeping, it becomes ridiculous when you try to apply it to crypto related services.

[DYING_S0UL]

Are you a Kucoin account holder who hasn't used your Non KYC verified account for a while? Well, I did receive an email in my inbox, and it appears Kucoin is going to start charging a certain fee on dormant accounts that are not verified.

If you still have your funds in there, please move them.

Does the Non KYC accounts are even usable? I mean mine is already KYC'ed, so I woundn't know what would be the missing features in the Non KYC version. Also, CEX are centralised, so they require mandatory KYC, whenever a new users registers, they are always instructed to complete the KYC first! So I don't understand why would be their be dormant Non KYC acoount lying around and as well as funds in them? I thought they didn't allowed deposits or withdrawals before doing KYC! Or did they? In the past? 

[logfiles]

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

It's simple... so that they force you to verify, and they are back in business with you  

Does the Non KYC accounts are even usable? I mean mine is already KYC'ed, so I woundn't know what would be the missing features in the Non KYC version. Also, CEX are centralised, so they require mandatory KYC, whenever a new users registers, they are always instructed to complete the KYC first! So I don't understand why would be their be dormant Non KYC acoount lying around and as well as funds in them? I thought they didn't allowed deposits or withdrawals before doing KYC! Or did they? In the past?  

Only the withdrawal option is enabled, but up to 25K USD. I don't know if it's the daily withdrawal rate or lifetime. Honestly, I haven't used Kucoin since somewhere in May 2021when I realized that my Country was part of those that were not allowed to have their residents register in the platform.
So my account has been lying around in active.

[khaled0111]

Why is it only applied on accounts that have not completed kyc?

Very good point! In the email they sent to their customers (obviously, only the owners of dormant accounts), they claim that they are enforcing KYC and adding this measure for security reasons.

This is quite interesting, because how would this make those dormant accounts more secure and why ate already verified accounts considered more secure?
I can think of of just one logical explanation which is when there is a dispute over the ownership of an old account. In this case, they have no reliable way to verify who is the real owner if that person didn’t pass kyc.

[Upgrade00]

It's simple... so that they force you to verify, and they are back in business with you  

If my account has been dormant, the action most will take is move their funds out. I wonder if they'll negatively change any account and deduct it in the future if a deposit is made
I also wonder what benefit they get from dormant accounts that have undergone the kyc process.

I can think of of just one logical explanation which is when there is a dispute over the ownership of an old account. In this case, they have no reliable way to verify who is the real owner if that person didn’t pass kyc.

I don't remember using kucoin, but almost all exchanges are a pain when you want to recover an account that has been blocked or is disputed, even with full kyc.

[hugeblack]

[This is quite interesting, because how would this make those dormant accounts more secure and why ate already verified accounts considered more secure?

Even banks do this. Depending on the type of account, there are fees charged for each inactivity period, which can start as late as 12 months in some countries. However, over time, the funds are sent to the state as unclaimed property. This won't happen with Kucoin, and they will likely seize them.

If you leave $500 in a token and its value increases, they will most likely sell it and keep the profits. This will represent a good income.

[coupable]

It show they want to get the coins instead of fulfill their duty for regulation.

These are profit-making companies whose goal is to operate in order to achieve profits. I do not see anything that prevents taking measures to benefit from storing users assets because these are service platforms for a fee and not a private wallet that you use and leave whenever you want without charges. It's users leaving their assets in exchangers whatever the reasons.

Some accounts are inactive because their owners are either in jail or in a region of war or natural disaster without internet connection. Those measures should take into consideration those conditions for accounts who can probe inactivity valid reason once waking up.

[Darker45]

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

I know that banks charge dormant accounts to cover the cost of maintenance. The exchange is keeping your account, even if it's dormant, you would have to pay for record-keeping and safekeeping. All these are ways of making more profit.

This is actually a funny excuse. Do they not maintain active or inactive yet KYCed accounts? Why don't they charge maintenance fee to active accounts, then? Why is it that only inactive or non-KYC accounts have to pay for maintenance? Are they the only ones that need to be maintained, consume storage, and so on? This is obviously just a way for them to make easy money and for their clients to be consistently active in using their services.

But, yeah, I don't see any reason why KuCoin won't join this profitable venture. And since there don't have to be regulations for them to be able to do that, why not, right? And so they're all doing that--banks, exchanges, other custodial wallets, gambling sites, and so on. Lately, even California wants to take part in the loot.

[avp2306]

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

I know that banks charge dormant accounts to cover the cost of maintenance. The exchange is keeping your account, even if it's dormant, you would have to pay for record-keeping and safekeeping. All these are ways of making more profit.

This is actually a funny excuse. Do they not maintain active or inactive yet KYCed accounts? Why don't they charge maintenance fee to active accounts, then? Why is it that only inactive or non-KYC accounts have to pay for maintenance? Are they the only ones that need to be maintained, consume storage, and so on? This is obviously just a way for them to make easy money and for their clients to be consistently active in using their services.

But, yeah, I don't see any reason why KuCoin won't join this profitable venture. And since there don't have to be regulations for them to be able to do that, why not, right? And so they're all doing that--banks, exchanges, other custodial wallets, gambling sites, and so on. Lately, even California wants to take part in the loot.

That implementation is like they are trying to force those dormant user to comeback and trade on their exchange so that they won't get penalize or their account will totally get terminated. But I would choose to be terminated rather then being force to pay on a platform that I won't use again.

This is also an excuse so that they can get the remaining asset of their user that's why I really find this crazy. So maybe better for people to trade on other exchange so that they won't encounter the same issue as what Kucoin trying to implement to their users.

[albon]

That implementation is like they are trying to force those dormant user to comeback and trade on their exchange so that they won't get penalize or their account will totally get terminated. But I would choose to be terminated rather then being force to pay on a platform that I won't use again.

This is also an excuse so that they can get the remaining asset of their user that's why I really find this crazy. So maybe better for people to trade on other exchange so that they won't encounter the same issue as what Kucoin trying to implement to their users.

I don't see anything wrong on their part.. You, as a user, must agree to their terms and conditions and the decisions they set. Either close your account or don't create an account with them in the first place. They need to make a profit from your pocket and from the pockets of their clients; they didn’t open this exchange and offer all these features to you for free.

The fault lies with the users who leave their assets with them. They did not present themselves as a personal cryptocurrency wallet. I see that Binance has a dormant account policy among its rules of service.. Have you read it? Check clause 19.3 [here].

I believe all exchanges are like this, and everyone should be aware of their terms before using an exchange so that they don’t regret it later when they find their assets deducted or seized by the platform. Perhaps the difference is that Binance does not charge fees on inactive accounts.

[tabas]

The crazy part of this, even accounts that they've blocked due to investigations or regulations still get charged for being dormant. The users cannot access their funds to move them and those funds are slowly depleted. The users can't confirm how much is being taken either.

This could be their target for implementing this, along with multiple accounts that are dormant with a $5 or less balance. I can imagine they'll have thousands of those just sitting around. This is their best approach to get their hands on those funds with little or no consequence.

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

That's exactly what they want to happen. If they've got around hundred thousand users and they've got $5-$10 worth of crypto on their accounts, they'll just deplete. As they say, this is one way of stealing the money of their users legally. It's doubting that these people even saw some email notification about this update will take time to withdraw those when there could be a higher minimum withdrawal so, not to bother themselves they'll just leave the funds there that they'll just charge as per their new rule.

[goldkingcoiner]

The crazy part of this, even accounts that they've blocked due to investigations or regulations still get charged for being dormant. The users cannot access their funds to move them and those funds are slowly depleted. The users can't confirm how much is being taken either.

This could be their target for implementing this, along with multiple accounts that are dormant with a $5 or less balance. I can imagine they'll have thousands of those just sitting around. This is their best approach to get their hands on those funds with little or no consequence.

I can't find any regulatory reason to specifically charge dormant non-kyc or non-kyb accounts.

Either Kucoin is basically just stealing people's money or they want to get rid of non KYC accounts by imposing fees for holding on to their wallets. Both reasons are complete BS and should not even be legal, due to the fact that when people registered their account on Kucoin, they did not agree to something like this. It was also not anywhere in the terms and conditions. So how can they enforce a change like this on them?

Kucoin is shady.