Core Insights - The digital asset industry experienced over $2.17 billion in thefts in the first half of 2025, with 69% linked to centralized exchanges, highlighting the need for proven trust rather than declared trust [1] Industry Trends - Regulatory scrutiny is increasing, prompting exchanges to adopt verifiable security models, moving away from the "trust us" era to frameworks that allow independent testing and validation of controls and risk systems [2] - KuCoin exemplifies how exchanges are responding to regulatory pressures by implementing measurable security frameworks [2] Company Initiatives - KuCoin has enhanced its security and transparency framework by restructuring core systems, redesigning wallet architecture, and integrating third-party audits, demonstrating a commitment to user protection and accountability [3] - The CEO of KuCoin, BC Wong, stated that exchanges must collaborate with regulators from the beginning and build trust within the financial ecosystem, indicating a shift in the industry's operational approach [4] - KuCoin's $2 Billion Trust Project has focused on overhauling security architecture and risk management systems over the past five years, aiming to make transparency an engineering principle rather than just a marketing claim [5] Certifications and Standards - KuCoin has sought independent verification to ensure its controls and data protection frameworks meet international standards, holding four major certifications that no other major exchange currently matches [6] - The certifications include the Cryptocurrency Security Standard (CCSS), which verifies private key management, and SOC 2 Type II, which confirms the effectiveness of operational and security controls over time [7]