KuCoin, a leading cryptocurrency exchange, has announced the introduction of dormancy fees for inactive accounts starting July 15, 2025. This measure aims to enhance platform security and protect user assets.
Introduction of Dormancy Fees
KuCoin announced the introduction of dormancy fees for inactive non-KYC/non-KYB accounts. "To enhance platform security and protect user assets, KuCoin will begin imposing dormancy fees on inactive non-KYC and non-KYB accounts, effective July 15, 2025," as stated by KuCoin Official Announcement.
Impact on Cryptocurrency Market
Dormancy fees will affect all cryptocurrencies in non-verified accounts, including BTC, ETH, and other altcoins. This initiative aligns with industry trends, as similar charges have been implemented by exchanges like Binance and Coinbase. The introduction of dormancy fees may result in users migrating funds to other platforms or completing KYC processes to avoid these fees.
Market Reactions
Market reactions to these changes have yet to manifest significantly, but previous experiences suggest that dormancy fees in major exchanges led to increased compliance rates. KuCoin's decision may influence similar policies across other platforms, contributing to enhanced accountability in the cryptocurrency sector.
The introduction of dormancy fees by KuCoin could be a crucial step toward improving security and compliance in the cryptocurrency environment, as other platforms may follow suit.
