KuCoin users have been warned by the Dutch national bank, De Nederlandsche Bank, which claims the exchange is illegally functioning.
The Dutch central bank announced on December 15 that MEK Global Limited (MGL), doing trade in the Netherlands as KuCoin, was not in conformity with Dutch Anti money laundering and Combatting the Financing of Terrorism standards.
According to De Nederlandsche Bank, the cryptocurrency company was “illegally offering services” and “illegally offering custodian wallets.”
The financial institution stated that the “customers of MGL are not in violation,” but it added that “this may increase the risk of customers becoming involved in money laundering or terrorist financing.”
Amid the crypto market slump and the bankruptcy of FTX, KuCoin, as a major crypto exchange, has been the focus of attention by regulators and lawmakers.
In July, when reports circulated that the exchange was going bankrupt, CEO Johnny Lyu dispelled those fears by saying that the company was solvent and that it offered proof of reserves to its customers.
Binance Holdings Limited faced similar claims of illicit operations from De Nederlandsche Bank for allegedly breaking AML/CFT laws. In the end, Binance paid an “administrative fine” of about €3 million because of the misconduct.
KuCoin Tries to Win Over Customers
KuCoin, a cryptocurrency exchange, has recently had its custodial assets and liabilities audited, and found to be in good standing.
The audit was done by Mazars, a top international accounting firm, to ensure users’ payments were handled accurately and transparently.
A recent press release from the exchange states that the audit by the tax and advising firm is intended to make users feel secure and to offer an unbiased, factual report.
Meanwhile, auditing firm Mazars Veriitas determined that Binance’s Bitcoin is collateralized at a rate of 101%.
Everyone who uses the exchange can check the safety of their Bitcoin balance by looking at the blockchain data publicly because of the same audit.
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