Netherlands hits KuCoin with regulatory warning

abdelaziz Fathi

The Dutch Central Bank is warning investors that KuCoin – the fourth-largest crypto exchange in the world by trading volume – is operating in the Netherlands without being authorised to do so.

The central bank also fired a warning shot across the bow of unlicensed platform selling cryptocurrency to locals, charging them with breaching the country’s securities regulations.

“This means MGL is not in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft) and is illegally offering services for the exchange between virtual and fiduciary currencies and it is illegally offering custodian wallets,” the bank said.

The regulator assured KuCoin customers that they are not in violation. However, their trading with the unregulated firm increases the risk of customers becoming involved in money laundering or terrorist financing.

KuCoin, established in September 2017, is one of the popular cryptocurrency exchanges, having handled almost $423 million worth of cryptocurrency transactions over the last 24 hours, according to Coinmarketcap.com.

To encourage regulated business within the crypto industry, the country adopts a licensing scheme for digital assets services after the amendment it introduced two years ago to the EU’s Money Laundering Directive. The Dutch government also introduced  a raft of new regulations, including tougher KYC rules for digital currency transactions. The authorities want to prevent anonymity in cryptocurrency transactions thereby placing a ban on anonymous crypto accounts.

Earlier this year, the Dutch central bank fined Binance €3.3 million as the crypto exchange was providing its services in the Netherlands without the required registration.

Binance was originally hit by an administrative fine of a €2 million base amount. However, the DNB said the penalty was increased as the exchange benefited from lower costs because it hadn’t paid registration fees and other regulatory charges, unlike its competitors.

The Dutch central bank also cited Binance’s large client base in the country and its huge trading turnover as additional reasons to hike its fine. Overall, the cryptocurrency exchange was not in compliance with anti-money laundering or anti-terrorism financing legislation in the Netherlands.

Regulators in Britain, Germany, Hong Kong and Italy have earlier voiced similar concerns and have stepped up pressure on Binance. However, the world’s largest crypto ecosystem has recently secured many approvals in European countries.

Read this next

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

Financewire

FBS Financial Market Analysts Forecast Gold Prices to Rise to $2,800

FBS, a leading global broker that has recently launched an upgraded FBS app, projects gold price surge to $2,800 per ounce by the close of 2024.

Market News

Adapting to Global Economic Shifts Japan’s Monetary Policy in Focus

Amidst the evolving landscape of global economics, Japan’s monetary policy stands as a testament to adaptability and strategic foresight. The Bank of Japan (BoJ) has embarked on a nuanced approach to maintain stability while navigating the complexities of a changing financial environment.

<