The Dutch Bank (DNB) has issued a statement that crypto exchange KuCoin is operating illegally in the Netherlands. The exchange platform has not registered and is therefore not officially allowed to offer its services in the Netherlands.
Warning from DNB against crypto service provider MEK Global Limited, trading under the name KuCoin https://t.co/kedwEkpcOt
— De Nederlandsche Bank (@DNB_NL) December 15, 2022
Crypto exchange against the law
MEK Global Limited, a company registered in Seychelles trading as KuCoin in the Netherlands, does not have a DNB registration.
“This means that MEK Global Limited is in violation of money laundering and terrorist financing laws and is illegally offering trading opportunities and wallets.”
The statement does not state what DNB intends if KuCoin continues in this way in the Netherlands. There is a chance that the crypto exchange can expect fines from the central bank of the Netherlands in the short term.
By the way, KuCoin customers are safe and do not violate the law by using the platform. At this time, KuCoin has not yet responded to DNB’s accusations.
KuCoin is gigantic
KuCoin is one of the largest exchange platforms in the world. The trading house is active in more than 200 countries around the world and has millions of users. It is also one of the largest in the industry in terms of trade volume. In that respect, it is strange that the company does not bother to obtain a license in the Netherlands.
There is a chance that the platform’s lawyers believe that it can operate just fine in this way, until the pressure from DNB becomes too great. If it actually receives fines, there is a chance that it will quickly do everything possible to obtain a permit.
Binance operates a bit the same way. That bitcoin (BTC) exchange often tries to continue illegally for as long as possible, until it gets into trouble and only then takes action. Unfortunately, this is possible for large parties that can count on the support of a gigantic army of lawyers.