Dutch central bank warned KuCoin that was operating without legal registration
The Dutch central bank, De Nederlandsche Bank, has warned KuCoin investors, claiming that the exchange is not legally registered.
Dutch central bank says KuCoin is not licensed and ‘illegally offering services’
The central bank said in a Dec. 15 notification that MEK Global Limited, or MGL, which does business in the Netherlands as KuCoin, was not in conformity with the country’s anti-money laundering, or AML, and combating the financing of terrorism, or CFT, legislation. De Nederlandsche Bank said that the crypto business was “illegally offering services” and “illegally offering custodial wallets” to consumers.
“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.”
DNB warns against MEK Global Limited, doing business as KuCoinhttps://t.co/kgh6XVkYbI
— De Nederlandsche Bank (@DNB_NL) December 15, 2022
KuCoin, which was founded in 2017, is headquartered in Seychelles and operates in the majority of countries throughout the world. As a major crypto exchange, KuCoin has been scrutinized by regulators and lawmakers in the aftermath of the crypto market decline and the demise of FTX. In July, CEO Johnny Lyu denied allegations of insolvency at the exchange, and the firm supplies consumers with evidence of reserves data.
In 2021, De Nederlandsche Bank made similar concerns about Binance Holdings Limited’s illicit activity and the potential of breaking AML and CFT legislation. Due to the offenses, Binance paid a “administrative fine” of more than 3 million euros.
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