The Dutch Central Bank, in a statement yesterday KuCoin stated that the stock exchange is not in accordance with Dutch law. According to officials, the exchange is a subsidiary of a Seychelles-registered business called MEK Global Limited (MGL).
Customers using the exchange are not considered to be breaking the law, according to De Nederlandsche Bank (DNB). As a matter of fact, KuCoin has shortcomings that will be the subject of activities such as money laundering and illegal financing.
KuCoin, which is also not licensed in the USA, is one of the leading cryptocurrency among the stock exchanges.
It operates in more than 200 countries and is noted for its low transaction fees. The exchange has been operating in the Netherlands since 2019.
KuCoin Exchange is in Trouble
Leading exchange KuCoin has increased its transparency with the help of Mazars. The exchange recently released its proof of reserve. The report by Mazars concluded that KuCoin’s BTC, ETH, USDT and USDC reserves were over-collateralized at 101, 100%, 102% and 101%, respectively.
KuCoin CEO Johnny Lyu commented while talking about his reserves.
“As a public exchange, we value users’ trust in us and are committed to contributing to the creation of a culture of transparency in the industry. Our cooperation with Mazars is just one of the measures that will enable us to fulfill this commitment to our users.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.