Singapore crypto exchange KuCoin nets $20m from investors IDG, Matrix Partners

Buying cryptocurrencies can be a complex process. Beginners to the trade can be easily put off by the number of steps and due diligence needed to start their investment journey.

That’s where Singapore-based KuCoin wants to make a difference.

CEO and co-founder Michael Gan admitted that it’s more complicated to invest in cryptocurrencies than in traditional financial assets like stocks and bonds. He’s on a mission to make cryptocurrency trading “accessible to the masses by offering a user-friendly platform.”

KuCoin has increased its staff so it can offer 24/7 customer support in English and Chinese via social messaging app Telegram. It now also supports 12 different languages, as Gan revealed that language is a major barrier for many traders.

Today, KuCoin announced the close of a US$20 million series A round from IDG Capital, Matrix Partners, and Neo Global Capital (NGC). The company currently ranks 49th in the world in terms of trading volume at US$23.9 million and claims to have over 5 million registered users.

Why Singapore

Gan became interested in bitcoin mining during his university days. After graduating from Chengdu University in 2010, he and his co-founders embarked on an in-depth blockchain research, which gave them the idea for KuCoin. They started to build the platform’s architecture in 2013.

The company finally began operations in 2017, choosing to register in Singapore.

The city-state is home to its fair share of crypto exchanges, such as Kryptos-X, iStok, EurekaPro, and Coinhako.

Gan shared that stricter regulations – and sometimes even outright bans – are among the biggest challenges faced by crypto trading businesses.

Several markets like China are cracking down on crypto exchanges. However, Singapore has taken a rather hands-off approach in regulating the industry.

Entering new markets

With the new funding, KuCoin plans to expand its business globally in hopes of increasing its user base.

It is exploring several new markets including Vietnam, Turkey, Italy, and Russia as well as Spanish-speaking countries. KuCoin aims to have a total of 10 global communities up and running by the second quarter of 2019.

To do this, the company will tap into the network and expertise of its new investors.

It will leverage IDG Capital’s marketing power, as well as Matrix Partners’ resources and support. Crypto asset investor NGC, on the other hand, will help connect KuCoin to other promising blockchain projects it invested in to form synergies.

KuCoin will also invest heavily in its blockchain training center.