The Dutch Central Bank issued a warning to investors and traders using the KuCoin exchange, stating that the exchange is not registered in the country.
MEK Global Limited, or MGL, which operates in the Netherlands as KuCoin, is not in compliance with anti-money laundering and anti-terrorist financing regulations, according to a statement from the regulator. The Central Bank explained that the platform illegally offers users its services for trading and storing digital assets, as well as for exchanging virtual and fiat currencies. This may increase the risk of the exchange’s clients being involved in illegal activities, fears the Central Bank of the Netherlands.
The KuCoin exchange was launched in September 2017, and since October 2019 it has been operating in the Netherlands. The Dutch regulator did not specify what action it would take against KuCoin for operating without registration. At the same time, the Central Bank of the Netherlands is not the only agency that paid attention not to the activities of KuCoin. This summer, the Ontario Securities Commission accused the trading floor of violating securities laws, demanding a fine of about $1.6 million.
Recall that last year the Central Bank of the Netherlands filed similar charges against the Binance exchange. For violations, Binance management was forced to pay a fine of 3.3 million euros.
Source: Bits
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