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.<\/p>\n
In a Dec. 15 announcement, the central bank said\u00a0that MEK Global Limited, or MGL, which does business in the Netherlands as KuCoin, was not in compliance with the country\u2019s Anti-Money Laundering and Combatting the Financing of Terrorism (AML\/CFT) regulations. De Nederlandsche Bank added the crypto firm was \u201cillegally offering services\u201d as well as \u201cillegally offering custodian wallets\u201d for users.<\/p>\n
\u201cCustomers of MGL are not in violation,\u201d said the bank. \u201cHowever, this may increase the risk of customers becoming involved in money laundering or terrorist financing.\u201d<\/p>\n
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.<\/p>\n