Regulation in the Netherlands: KuCoin in the sights of the Central Bank

KuCoin declared non grata – Say that central banks don’t like bitcoin would be an understatement, and that of the Kingdom of Netherlands is no exception to the rule. The Dutch Bank has just published on its website a Warning clear to customers of the cryptocurrency platform KuCoin. You can continue to use it, but at your own risk. Head to Amsterdam to take stock!

The Central Bank of the Netherlands warns users of KuCoin

The statement published last week on the Central Bank’s website is short, simple, but effective. The Exchange Kucoin is singled out and its users clearly informed that their favorite platform is simply outlaw.

“KuCoin is not in compliance with the country’s anti-money laundering and counter-terrorist financing law. The company illegally offers financial services as well as custodial wallets to users. Customers are not in violation. However, this may increase the risk that they are involved in money laundering or terrorist financing. »

Declaration of the Dutch Bank

You can continue to use Kucoin but you greatly increase the likelihood of financing terrorism and being involved in large scale money laundering.  This is essentially the warning issued by the Central Bank of the Netherlands.
The Central Bank of the Netherlands warns users of KuCoin – Source: Twitter

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A complicated end of the year for KuCoin and Johnny Lyu

Amsterdam is also firm with Kucoin, because its parent company MEK Globalbased in the Seychelles, has no legal registration in the country and is therefore not in accordance with national law. The regulator takes advantage of this publication to give the list of registered exchanges and warn its population against the use of outlaw platforms.

Definitely, 2022 will have been a annus horribilis for the platforms as a whole and for KuCoin in particular. Summoned to justify itself and reassure its users, Johnny Lyuits CEO, had to intervene urgently in the middle of the summer to extinguish a start of media fire. At this time, no statement regarding this warning from the Dutch Bank only came from the KuCoin teams.

The Central Bank of the Netherlands had already charged a fine over 3 million euros to Binance for similar reasons and seems determined to do the same with all exchanges that are not yet within the legal framework. At first glance, an attack ad hominem how hard this one may seem, but the institution seeks above all to protect new users highly exposed and dangerously targeted by a multitude of malicious crypto projects.

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