Dutch Central Bank Declares KuCoin is Not “Legally Registered” in the Netherlands

According to the Central Bank, KuCoin is providing virtual assets illegally, in violation of the Anti-Money and Terrorist Financing Act.

  • Dutch Central Bank has warned about KuCoin’s activities, stating the exchange did not register as required.
  • According to a DNB investigation, KuCoin violated the Anti-Money Laundering and Terrorist Financing Act.
  • The DNB warned citizens not to use the cryptocurrency exchange.
  • DNB has yet to take steps against KuCoin.
  • Centralized entities have been under scrutiny since FTX collapsed.

The Dutch Central Bank, also known as De Nederlandsche Bank (DNB), issued a warning regarding the activities of the cryptocurrency exchange KuCoin stating the exchange didn’t register duly before it commenced operation in the country. 

The DNB charged KuCoin with violating the Anti-Money Laundering and Terrorism Financing Act, saying the cryptocurrency exchange provides virtual assets illegally. Further, the apex financial institution noted that KuCoin doesn’t have a regulatory license to provide virtual assets services and custodial wallets. 

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In the statement, the DNB warned citizens of the country to avoid using the cryptocurrency exchange. However, the apex financial body in the Netherlands clarified that the customers themselves had not violated its regulation. Yet the DNB explained that, through KuCoin, users are exposed to illicit activities that are against its regulatory principles. 

DNB has yet to mention its actions against KuCoin, which has been operating in the country since October 2019. The cryptocurrency exchange currently provides virtual asset services in more than 200 countries.

KuCoin, on numerous occasions, has been on the wrong side of regulators. Recall that last June, the Ontario Securities Commission banned and fined KuCoin for violating its regulatory stipulations. The regulator asked KuCoin to pay a fine of $1.6 million. 

Likewise, Binance was fined by the DNB in July for not registering duly. The regulatory body imposed a $3.4 million fine on the cryptocurrency exchange. The fine resulted after numerous warnings from the DNB. 

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Following the collapse of FTX, there are increasing calls for the proper regulation of the cryptocurrency sector. In that regard, the European Union recently approved the Markets in Crypto-Assets Regulation (MiCA) to regulate the industry among its member states. 

Moreover, in the US, Senator Elizabeth Warren is urging Congress to pass bipartisan legislation requiring crypto firms to comply with the same regulations as banks and corporations.

On the Flipside

  • Despite the allegations, the Dutch Central Bank has yet to announce any action against KuCoin.
  • Meanwhile, KuCoin has not yet responded to the allegations.

Why You Should Care

This recent development arises during a challenging time for centralized crypto entities. The latest accusations against KuCoin are likely to raise more questions among the crypto community about centralized exchanges.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Soumen Datta

Soumen has been a dedicated researcher and writer in the field of cryptocurrencies for the last few years. Even though Indian crypto regulations are still unclear, he believes that India will continue to innovate in the years to come. He loves to play his guitar and sing along in his spare time. He holds bags mostly in BTC, ETH, BNB, MATIC, ADA.