KuCoin Pushes Passkeys as Crypto Exchanges Race to Kill the Password

KuCoin Joins the Passwordless Push

KuCoin is now promoting passkeys as its recommended authentication method, urging users to ditch passwords entirely in favor of biometric and device-based login. The exchange's latest security campaign frames passwords as "the weakest link" and positions passkeys as a phishing-proof alternative that works with fingerprints, facial recognition, or device PINs.

The move places KuCoin alongside Binance, Coinbase, OKX, and Bybit in a growing cohort of major exchanges that now support full passwordless login via the FIDO2 standard. It is not a minor UI tweak. It is a fundamental shift in how crypto users protect their funds.

Why Passwords Are a Liability in Crypto

The case against passwords in crypto is not theoretical. Phishing remains one of the most effective attack vectors in the industry. A convincing fake login page, a cloned email, a compromised SMS, and suddenly a user's credentials are in an attacker's hands. Two-factor authentication helps, but SMS-based 2FA has been repeatedly bypassed through SIM-swap attacks.

Passkeys solve this at the protocol level. Built on the FIDO2 and WebAuthn standards developed by the FIDO Alliance, passkeys use public-key cryptography where the private key never leaves the user's device. The credential is cryptographically bound to the specific website origin, so a passkey created for kucoin.com literally cannot be used on a phishing copy at kuc0in.com. The server never sees a secret that could be stolen in a data breach.

For an industry where a single compromised password can drain a lifetime of savings, this is not incremental improvement. It is a category change.

How KuCoin's Passkey Implementation Works

KuCoin's passkey setup lives in the account security settings and supports two approaches: synced passkeys and device-bound hardware keys.

Synced passkeys use your device's built-in biometric sensors or screen lock. On an iPhone, you authenticate with Face ID or Touch ID, and the passkey syncs across all your Apple devices via iCloud Keychain. Android users get the same experience through Google Password Manager. Once set up on one device, you can log into KuCoin from any synced device without re-enrolling.

Hardware security keys like YubiKeys offer a physical alternative. These FIDO2-compliant keys store credentials in tamper-resistant hardware and require physical contact or NFC tap to authenticate. They are the gold standard for users who want air-gapped security.

Supported platforms include Windows 10 and above, macOS Ventura and later, ChromeOS 109+, iOS 16+, and Android devices with biometric capabilities. Once a passkey is added, users can log in without entering a password or performing traditional 2FA.

The Crypto Exchange Passkey Scoreboard

Not every exchange has moved at the same pace. Here is where the major platforms stand:

The divide is telling. Exchanges that process the highest volumes and face the most sophisticated attacks have adopted passkeys fastest. Smaller or regional platforms are lagging behind, leaving their users exposed to password-based attacks that the FIDO2 standard was designed to eliminate.

The Numbers Behind the Passwordless Shift

The broader adoption data makes the case even stronger. According to the FIDO Alliance's Passkey Index, 69% of consumers now hold at least one passkey, up from 39% just two years ago. More than 3 billion passkeys are currently securing consumer accounts globally. Enterprise adoption has hit 87%, up 14 percentage points from 2022.

The performance gap is dramatic. Passkeys achieve a 93% login success rate compared to 63% for traditional password-plus-MFA flows. Average sign-in time drops from 31.2 seconds to 8.5 seconds, a 73% reduction. Support desk calls related to sign-in issues drop by 81%.

For crypto exchanges specifically, these numbers translate directly to fewer locked accounts, fewer support tickets, and fewer successful phishing attacks. Gemini's mandatory passkey rollout in May 2025 produced a 269% rise in authentications, suggesting users who switch to passkeys log in more frequently because the friction is gone.

The passwordless authentication market reached $24.1 billion in 2025 and is projected to grow at 18.24% CAGR to $55.7 billion by 2030. This is not a niche experiment. It is an industry-wide migration.

What This Means for Crypto Card Users

For users who hold crypto cards alongside exchange accounts, passkey adoption adds a layer of protection to the entire spending chain. If your exchange account is secured with a passkey, an attacker cannot phish your credentials to drain funds that back your card balance. This matters especially for cards tied to self-custody wallets, where the user bears full responsibility for security.

Exchanges that offer both card products and passkey authentication, like Binance, Coinbase, Bybit, and now KuCoin, give users a more coherent security posture. You authenticate once with biometrics, manage your card funding and exchange trading from the same secured session, and never expose a reusable password to the network.

If your exchange does not yet support passkeys, consider whether the convenience of staying is worth the security tradeoff. The gap between passkey-enabled and password-only platforms is widening every quarter.

FAQ

Do passkeys replace 2FA entirely? On exchanges with full passkey support like KuCoin, yes. The passkey itself serves as both your identity proof and your second factor, since it requires biometric verification or physical device access. Some exchanges like Kraken use passkeys only as a 2FA method alongside passwords.

What happens if I lose my device? Synced passkeys survive device loss because they are backed up to your cloud keychain (iCloud, Google Password Manager). Hardware keys should be registered in pairs, with a backup key stored securely. Most exchanges also allow recovery via email and identity verification.

Are passkeys safer than hardware wallets for exchange access? They serve different purposes. Hardware wallets protect on-chain assets. Passkeys protect your exchange login. Using both is ideal: a passkey to access your exchange account, and a hardware wallet for self-custody of assets you are not actively trading.

Can passkeys be hacked? The private key never leaves your device and cannot be phished or intercepted. An attacker would need physical access to your unlocked device and your biometric data simultaneously. No remote attack can extract a passkey credential.

Overview

KuCoin's push toward passkeys reflects a broader industry reality: passwords are a solved problem, and the solution is FIDO2. With 69% of consumers already holding passkeys and major exchanges racing to implement full passwordless login, the transition is no longer a question of if but when. For crypto users, the stakes are higher than in any other industry. A compromised exchange password can mean irreversible financial loss. Passkeys eliminate the most common attack vector, phishing, at the protocol level. If your exchange supports them, enable them today.

Recommended Reading

• Binance Warns of Lookalike Wallet Address Scams: How to Detect and Prevent Them
• COCA Wallet Migrates to Privy: Seedless Authentication Comes to MPC Wallets
• Binance Pushes ED25519 as the Gold Standard for API Security and Deprecates HMAC Keys

Sources

• KuCoin Passkey Announcement
• FIDO Alliance Passkey Index 2025
• Crypto Exchanges Supporting Passkeys
• State of Passkeys Adoption Data