According to a statement from the Dutch central bank, cryptocurrency exchange KuCoin has been warned for operating without registration in the Netherlands.
“Working Without a Legal Registration in the Netherlands”
De Nederlandsche Bank (DNB) said that MEK Global Limited (MGL), registered in Seychelles and trading under the name KuCoin in the Netherlands, has “no legal registration” with the DNB.
“This means that MGL violates the Anti-Money Laundering and Terrorist Financing Act and illegally offers exchange services and custody wallets between virtual currencies and fiat currencies,” the bank said.
DNB did not specify what it would do if KuCoin continued to operate without a license.
The central bank stated that KuCoin and MGL customers did not violate the law. There was no official statement from KuCoin.
Not licensed in the US, KuCoin operates in over 200 countries and is one of the largest cryptocurrency exchanges worldwide by trading volume, partly due to its low transaction fees. The exchange became operational in the Netherlands in October 2019.
In August 2021, the Dutch Central Bank issued a similar warning that Binance Holdings Ltd was operating without a license in the Netherlands. This led the company to set up a subsidiary in the country and pay a $3.3 million penalty in April 2022.
Launched in September 2017, KuCoin has become one of the most popular crypto exchanges and already has more than 8 million registered users from over 200 countries and regions.
*Not investment advice.
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