On Thursday, the Dutch central bank issued a statement claiming that the crypto-currency exchange KuCoin is operating in the Netherlands without having the proper registration to do so. According to a statement issued by the bank, KuCoin is a subsidiary of a company called MEK Global Limited (MGL), which is registered in the Seychelles.
KuCoin has no legal registration
According to De Nederlandsche Bank (DNB), customers of the exchange are not breaking the law, but they are at an increased risk of being involved in money laundering and illegal methods of financing terrorism.
KuCoin, which is not licensed in the United States, is nevertheless one of the leading crypto-currency exchanges globally in terms of trading volume.
KuCoin’s proof of reserves
In other recent news, KuCoin recently released its proof of reserves to usher in transparency, with the help of a major audit firm Mazars. The report prepared by Mazars concluded that KuCoin’s reserves in BTC, ETH, USDT and USDC are over-collateralized at 101%, 100%, 102% and 101% respectively.
Speaking about its reserves, Johnny Lyu, CEO of KuCoin, commented,
As a popular exchange, we appreciate the trust that users place in us and are committed to ensuring that we contribute in every way possible to building a culture of transparency in the industry. Our cooperation with Mazars is just one of the measures to ensure that this commitment to our users is met.
Principal, trade, margin, robot, contract, high frequency trading, pool, risk and client trust accounts for BTC, ETH, USDT and USDC are among the few parameters that were analyzed as part of the collateralization audit.