3 months ago 1 min read

Dutch Central Bank Claims Crypto Exchange KuCoin is Illegal


In a statement released on Thursday, the Dutch central bank, De Nederlandsche (DNB), referred to KuCoin, a MEK Global Limited subsidiary arm (MGL), as an unregistered exchange providing illegal services in the Netherlands.

According to the statement, KuCoin operations do not comply legally with the current Anti-Money Laundering and Anti-Terrorist Financing Act of the Netherlands. Therefore, it is not permitted to continue providing any crypto services under its purview.

The patrons of the exchange were not accused in the central bank's announcement. However, it was emphasized once more that continued use of the exchange would increase their vulnerability to involvement in terrorism and money laundering activities.

For anyone willing to conduct due diligence on the cryptocurrency exchanges, the bank supplied various contact details.

Status of the Dutch Bank on Other Exchanges

Recall that in July, the Binance exchange was hit with a $3.3 billion punishment by the Apex bank for operating illegally in the Netherlands. Despite being the most well-known exchange with a large number of customers from the Netherlands, it lacks the competitive advantage.

According to reports, Binance exchange broke a law that carries a £2 million third-degree fine.

The Dutch bank criticized Binance for violating the terms and conditions of virtual asset service providers (VASPs) starting on May 21, 2021, and requested it to take the appropriate action.

In response to the Dutch bank's stance, Binance said that because its subsidiary, Moon Tech Spain, had the VASP registration, it already had its operating license.

The first significant exchange to register with the DNB as a cryptocurrency exchange was Coinbase in September.

The breakthrough, according to Coinbase, will facilitate expansion, boost trust, promote growth, and enhance crypto policy-making, making it good news for the industry.

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