- The prominent exchange officially began operations in October 2019 in Netherlands.
- KuCoin has now disclosed its proof-of-reserves in an effort to increase transparency.
The Dutch central bank released a statement on Thursday saying that the cryptocurrency exchange KuCoin is operating illegally in the country. Bank documents reveal that KuCoin operates as a wholly owned subsidiary of MEK Global Limited (MGL), a Seychelles corporation.
Although consumers of the exchange are not breaching the law, according to De Nederlandsche Bank (DNB), they run a higher risk of being engaged in money laundering and unlawful means of funding terrorism.
Publishes Proof-of-Reserves
Despite the lack of a U.S. license, KuCoin is a top cryptocurrency exchange in terms of the worldwide trading volume. Because of its competitively cheap trading costs, it has members from over 200 different countries and is one of the most popular trading platforms overall. The prominent exchange officially began operations in October 2019 in the Netherlands.
KuCoin, with the support of the prominent auditing company Mazars, has now disclosed its proof-of-reserves in an effort to increase transparency. According to Mazars’ analysis, KuCoin’s Bitcoin, Ether, USDT, and USDC holdings are all over collateralized at 101%, 100%, 102%, and 101%, respectively.
KuCoin CEO Johnny Lyu stated:
“As a people’s exchange, we value users’ trust in us and commit to ensuring that we contribute in every way to building a culture of transparency in the industry. Our cooperation with Mazars is just one of the measures to ensure we follow through on that commitment to our users.”
De Nederlandsche Bank likewise accused Binance exchange of illegal activity in 2021, this time for supposed AML/CFT violations. The infractions resulted in an “administrative fine” paid by Binance of more than €3 million.
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