KuCoin/MEK Global Limited or MGL has received a warning by the Central Bank of the Netherlands, De Nederlandsche Bank for operating with a legitimate approval or registration.
De Nederlandsche Bank announced on December 15th, 2022 that “MEK Global Limited (MGL), doing business as ‘KuCoin’, is providing crypto services in the Netherlands without the required legal registration with DNB.” The Bank further noted that “This means MGL is not in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act.”
The dutch bank noted that “Customers of MGL are not in violation.” They also added that “However, this may increase the risk of customers becoming involved in money laundering or terrorist financing.”
Earlier on December 5, 2022, the crypto exchange hired Mazars, an international accounting firm to audit their Proof of Reserve(PoR).The objective behind the audit is to provide users additional transparency and reporting on whether their in-scope assets are collateralized, along with details on main, trade, margin, and robot. It accounts for Bitcoin and Ether, including stablecoins Tether and USD.
Wiehann Olivier, a partner at KuCoin, also notes, “After recent events, there is a dire need in the industry for additional transparency, and we are confident that Mazars’ PoR service offering will KuCoin and other international cryptocurrency exchanges will aid in building trust through transparency.”
The auditing reports of Mazars noted that the crypto exchange has appropriate Proof of Reserve and even the crypto exchanges have overcollateralized assets in the balance.
As per reports, KuCoin, the crypto exchange has approximately 20 million users globally, and the exchange operates its business in more than 200 countries and twenty-plus languages.
Currently, approximately 700+ coins and cryptos are registered on the KuCoin platform.
FTX was one of the largest cryptocurrency exchanges before its unlawful activities triggered a bank-run on the exchange. The exchange filed for bankruptcy on 11 November 2022.
As per reports, the FTX breakdown has severely affected more than one billion users and hundreds of investors lost their life savings. This collapse is touted as one of the biggest events in the crypto sector in the last two years.
Co-founder and former CEO of FTX, Sam Bankman-Fried, was reportedly arrested on Monday, December 12th. The Royal Bahamas Police Force officers arrested SBF following the sealed indictment from the United States Attorney shared with the Bahamian government. Until now, there are eight charges said to be slapped against SBF.
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Source: https://www.thecoinrepublic.com/2022/12/17/kucoin-received-dutch-central-banks-warning-for-operating-without-registration/