AI Scams are Surging in Crypto. KuCoin is Betting on a New Security Standard

Artificial intelligence is becoming a double‑edged sword in the cryptocurrency ecosystem. While exchanges deploy AI to spot fraud and monitor markets, criminals are increasingly using the same technology to automate scams and persuade victims to transfer funds.

AI Adoption by Crypto Criminals

TRM Labs’ AI‑in‑Crime Adoption Index shows a rise from a score of 28 in 2024 to 54 in 2026, indicating broader use of AI across illicit activities. Scams are the only crime category to reach a “Mature” level of AI adoption, with AI‑driven scam reports increasing roughly thirteen‑fold since 2022.

Regulatory Landscape

Europe’s Digital Omnibus on AI, effective July 27, postpones high‑risk obligations for certain systems to December 2, 2027, but excludes financial‑fraud detection from the high‑risk list. Transparency rules require AI systems that interact directly with users to inform them unless the interaction is obvious, covering customer‑service chatbots.

ISO/IEC 42001:2023 Certification

The international standard ISO/IEC 42001:2023 defines requirements for AI management systems. It obliges organizations to establish, implement, maintain, and continuously improve policies governing AI use, including responsibility allocation, performance monitoring, and change‑review processes.

KuCoin’s Certification

KuCoin has become one of the first digital‑asset platforms to obtain ISO/IEC 42001 certification. The certification covers its AI management system and related organizational functions, including fraud detection and market surveillance. KuCoin positions this as part of its $2 billion “Trust Project,” aimed at enhancing security, compliance, and user protection.

Implications for Users

While the certification does not guarantee flawless AI decisions, it provides a framework for oversight. Users can now ask concrete questions about AI governance on the platform, such as who is responsible for AI outcomes, how automated decisions can be overridden, and how errors are documented and corrected.

Looking Ahead

As crypto platforms move toward more autonomous AI applications—potentially initiating transactions or managing permissions—robust AI governance will become essential. Clear identities, permission structures, human‑intervention mechanisms, and auditable records will be critical to maintaining trust.