Dutch Central Bank Issues Warning Against KuCoin, Citing Its AML Violation

The Dutch central bank issued a statement saying cryptocurrency exchange KuCoin is operating in the Netherlands without being registered to do so.

KuCoin is a subsidiary of a Seychelles-registered company called MEK Global Limited (MGL), the bank said in a statement.

According to the regulator, MGL is not in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act and is illegally offering services.

This may increase the risk of customers becoming involved in money laundering or terrorist financing.

Customers of the exchange are not breaking the law, the DNB said, "but they may have a heightened risk of becoming involved in money laundering and terrorism financing."

In August 2021, the DNB issued a similar warning that Binance Holdings Ltd. was operating in the Netherlands without a license​. That led to the company setting up an entity in the country and paying a $3.3 million fine in April 2022.

Source: Reuters