Dutch Authorities Warn that KuCoin is Operating Without Registration
Image courtesy of 123rf.

Dutch Authorities Warn that KuCoin is Operating Without Registration

De Nederlandsche Bank issued a warning that KuCoin is not properly registered and that its customers are at an increased risk of getting involved with “money laundering or terrorist financing.”
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

According to a Thursday report, the cryptocurrency exchange KuCoin is operating in the Netherlands without being properly registered. The warning issued is specifically aimed at MEK Global Limited (MGL), the company that owns the exchange.

KuCoin Operating Without Registration in the Netherlands

According to the Dutch Central Bank (De Nederlandsche Bank), the Seychelles-registered MEK Global Limited is operating in the Netherlands through its subsidiary KuCoin without proper registration. The announcement states that the customers of the exchange are not in violation but that they are at an increased risk of “becoming involved in money laundering or terrorist financing.”

In 2021, Binance, the world’s largest crypto exchange, found itself in a similar situation. On August 18th, 2021, the Dutch Central Bank announced that CZ’s company is offering its services without properly registering with the institution and, thus, illegally. This announcement similarly warned customers of an increased danger of getting involuntarily involved in money laundering and terrorist financing. 

Ultimately, Binance resolved its issue with the Dutch authorities by paying fines totaling 3.3 million euros to the country’s central bank. In its announcements, De Nederlandsche Bank provides a link to its register of authorized cryptocurrency companies.

Join our Telegram group and never miss a breaking digital asset story.

Cryptocurrencies in the Benelux Countries Throughout 2022

Like Binance and KuCoin, Coinbase made headlines in the Netherlands in 2022. However, unlike the other two, America’s only publicly-traded crypto exchange earned its spotlight by becoming the world’s first major crypto exchange to gain regulatory approval in the country in late September.

Perhaps more notably, the Netherlands fund itself at the center of the Tornado Cash blacklisting that happened earlier this year. On August 12th, a developer of the cryptocurrency mixer was arrested in Amsterdam by the Dutch police. More recently, it was announced that he would remain in custody until at least February 2023.

Belgium, another of the Benelux countries, found itself in the news recently for an entirely different reason. While the regulators in the US have been hotly debating the legal and regulatory status of various cryptocurrencies, the Belgian watchdog published a report detailing why digital assets like Bitcoin and Ethereum are neither securities nor financial instruments.

Finance is changing.
Learn how, with Five Minute Finance.
A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.

Do you think KuCoin will be fined in a similar manner to Binance? Let us know in the comments below.