Dutch central bank De Nederlandsche Bank has issued a warning against a Bitcoin exchange. The bank warned investors using KuCoin, saying that the exchange operates without legal registration. Here are the details…
Warning about Bitcoin exchange from the Netherlands
In an announcement on December 15, the central bank pointed to MEK Global Limited, or MGL, which operates in the Netherlands as KuCoin. He said this company is not compliant with the country’s Anti-Money Laundering and Anti-Terrorist Financing (AML/CFT) regulations. De Nederlandsche Bank stated that the crypto firm is “illegally providing services” for users. It also added that it “illegally offers custodial wallets.” The bank used the following statements:
MGL customers are not breaking the law. However, this can increase the risk of customers being involved in money laundering or terrorist financing.
First launched in 2017, KuCoin is headquartered in Seychelles. The stock market operates in many countries of the world. It operates in more than 200 countries and is among the highest in terms of user numbers due to low transaction fees compared to its competitors. In October 2019, the exchange opened for trading in the Netherlands. KuCoin, a major crypto exchange, has been somewhat negatively impacted by the downturn of the crypto market and the collapse of FTX. Especially with the collapse of FTX, trust in centralized exchanges decreased. However, it has also been the subject of scrutiny by regulators and legislators.
De Nederlandsche Bank previously fined Binance
The stock market has faced allegations of bankruptcy before. cryptocoin.com As we reported, CEO Johnny Lyu denied the stock market bankruptcy rumors in July. Apart from that, the firm provides proof-of-reserve data for users. KuCoin recently released its proof of reserve with the help of a leading audit firm Mazars. The report by Mazars states that KuCoin’s BTC, ETH, USDT and USDC reserves are 101, 100, 102 and 101 percent, respectively. So the reserves are oversecured. KuCoin CEO Johnny Lyu commented while talking about his reserves:
As the public exchange, we value users’ trust in us and are committed to contributing in every way to creating a culture of transparency in the industry. Our cooperation with Mazars is just one of the measures that enable us to fulfill this commitment to our users.
De Nederlandsche Bank previously fined Binance
In 2021, De Nederlandsche Bank filed similar illegal operation allegations against Binance Holdings Limited for allegedly violating AML/CFT regulations. Binance later paid an “administrative fine” of over 3 million euros for the violations.
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