KuCoin, a prominent crypto exchange, has announced its plan to implement dormancy charges on accounts. The announcement reveals that KuCoin will start imposing dormancy fees on the non-KYC accounts that are inactive. The crypto exchange shared this plan in a recent official statement.

KuCoin Plans to Implement New Dormancy Charges on Inactive Accounts

The move to implement dormancy fees on accounts over their inactivity is included in KuCoin’s strategy to fortify asset security. In addition to this, while targeting the non-KYC compliant accounts, the platform also intends to decrease risks associated with unverified accounts. On the other hand, the accounts with the accomplished identity verification procedure will not be affected by this development.

In this respect, KuCoin has persuaded the consumers to avoid the newly introduced fees by transacting their assets to validated accounts. Alternatively, they can also accomplish the KYB/KYC process to be exempted from the respective charges. Nonetheless, a critical portion of the consumer base of the crypto exchange may go through a crucial dilemma. In line with KuCoin’s Terms of Use, consumers living in restricted areas like the mainland China and the United States are not allowed to complete KYB/KYC verification. Thus, for such consumers, the only options include account closure and asset withdrawal.

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Based on the announcement, the accounts subject to the latest dormancy fees will receive notifications before any deductions. Thus, the users who are going to be influenced in this development are pushed by the platform to act quickly to secure their funds without incurring significant charges. Keeping this in view, this move is a wake-up call for the users belonging to blocked regions.

Consumers Owning Targeted Accounts Need to Shift Funds to Avoid Newly Implemented Fees

As per KuCoin, the users holding inactive, non-KYC crypto accounts should shift their assets to some self-custody wallets. By doing this, they can be exempted from hefty dormancy charges, as it is the best defense strategy. Additionally, some legacy accounts possess grace periods, although they are rapidly shrinking. Even then, the users are advised not to rely on exceptions without having clear grounds.