Monday 30 January 2023
Home / none / Dutch central bank says KuCoin is not licensed and ‘illegally offering services’

Dutch central bank says KuCoin is not licensed and ‘illegally offering services’

The central bank of the Netherlands, De Nederlandsche Bank, has issued a warning to investors using KuCoin, saying the exchange was operating without legal registration.

In a Dec. 15 announcement, the central bank said that MEK Global Limited, or MGL, which does business in the Netherlands as KuCoin, was not in compliance with the country’s Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) regulations. De Nederlandsche Bank added the crypto firm was “illegally offering services” as well as “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.”

First launched in 2017, KuCoin is headquartered in Seychelles and operates in most countries around the world. As a major crypto exchange, KuCoin has been the subject of scrutiny by regulators and lawmakers amid the crypto market downturn and the collapse of FTX. CEO Johnny Lyu dismissed rumors of insolvency at the exchange in July, and the firm provides proof-of-reserves data for users.

Related: Coinbase enters the Netherlands with central bank approval

In 2021, De Nederlandsche Bank made similar allegations of illegal operations against Binance Holdings Limited for allegedly violating AML/CFT regulations. Binance later paid an “administrative fine” of more than 3 million euros due to the violations.

Cointelegraph reached out to KuCoin for comment, but did not receive a response at the time of publication.

Original Article

About Jude Savage

Check Also

Solana price rally risks exhaustion after SOL’s 120% pump in two weeks

Solana (SOL) price is up an impressive 60% since the new year, partially boosted by hype surrounding meme cryptocurrency Bonk (BONK). However, the SOL/USD pair now shows signs of exhaustion, raising anticipations that the token may see a short-term correction in the coming days. Solana turns overboughtSolana is one of the best performing cryptocurrencies so far in 2023 after being one of the biggest losers in 2022. On Jan. 9, SOL's price jumped to as high as $19.50, or around 120% gains in a recovery rally after sliding below $8 on Dec. 29, 2022. But the price spik also turned Solana into an overbought asset, per its daily relative strength index (RSI) reading above 70, as shown below. SOL/USD daily price chart. Source: TradingViewTraditional investors typically see an overbought RSI as a potential sell signal, given the indicator has historically coincided with a period of buyer exhaustion. As a result, SOL's price could enter a correction or a sideways consolidation stag..

Leave a Reply

Your email address will not be published. Required fields are marked *