15 Dec 2022
Dutch central bank says KuCoin is unlicensed and “illegally offering services”
De Nederlandsche Bank warns that this could make their clients more susceptible to money laundering and terrorism financing.
The Dutch central bank, De Nederlandsche Bank, which claimed the exchange was operating illegally has warned KuCoin users.
On December 15th, the central bank of the Netherlands announced that MEK Global Limited (MGL), doing business in the Netherlands as KuCoin, did not comply with the country's Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations.
De Nederlandsche Bank said the cryptocurrency company was “illegally offering services” and “illegally offering custodian wallets for users.”
“Customers of MGL are not in violation,” said the bank. “However, this may increase the risk of customers becoming involved in money laundering or terrorist financing.”
KuCoin was established in 2017 and had its headquarters in Seychelles, allowing it to serve customers worldwide. Considering the recent cryptocurrency market decline and the demise of FTX, regulators, and legislators have turned their attention to KuCoin, a major cryptocurrency exchange.
The company provides users with proof-of-reserves data, and CEO Johnny Lyu dispelled rumors of insolvency at the exchange in July.
Binance Holdings Limited faced similar allegations of illegal operations from De Nederlandsche Bank in 2021, this time for alleged violations of AML/CFT regulations. As a result of the infractions, Binance eventually paid an “administrative fine” of over 3 million Euros.
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