Dutch Central Bank De Nederlandsche Bank has warned investors by stating that crypto exchange KuCoin operates without an official registration.
In an announcement made on December 15, the Dutch Central Bank said that MEK Global Limited (MGL), which operates as KuCoin in the country, does not comply with the country’s Anti-Money Laundering and Anti-Terrorism Financing (AML/CFT) regulations. The Central Bank said that KuCoin has illegally offered service and custody wallets to Dutch citizens.
The bank said, “MGL customers are not in any breach. However, this may increase the risk of customers being 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
First established in 2017, the KuCoin exchange is headquartered in Seychelles. The company also provides services in many countries around the world. However, KuCoin, a major crypto exchange, has become the agenda of many regulators and lawmakers with the collapse of FTX. KuCoin CEO Johnny Lyu denied the company’s bankruptcy rumors last July. The company, like many crypto exchanges, did not neglect to publish proof of reserve data with the FTX crisis.
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On the other hand, De Nederlandsche Bank filed similar illegal operation allegations against Binance Holdings Limited in 2021 for allegedly violating AML/CFT regulations. Binance, on the other hand, later paid an administrative fine of more than 3 million euros for the violations in question.
Cointelegraph reached out to KuCoin for comment, but received no response at the time of publication.