KuCoin Received A Warning From The Central Bank Of The Netherlands, This Is The Reason!

JAKARTA The number four leading crypto exchange, KuCoin, received a warning from the Dutch financial authority, De Nederlandsche Bank (DNB). The central bank accused KuCoin of operating without permission in the Netherlands.

Therefore, DNB said KuCoin had traded digital assets illegally. DNB also accused KuCoin of violating the Anti-Money Laundering and Terrorism Financing Act.

Furthermore, the Dutch central bank warned Dutch citizens to avoid exchanging KuCoin crypto assets. At the same time, the financial authority confirmed that consumers did not violate the rules. DNB detailed that the warning was addressed to users related to illicit activities including money laundering perpetrators.

KuCoin itself has been operating in the country since October 2019. The crypto trading company provides digital asset services in more than 200 countries in the world.

Had problems with the Regulators

In June 2022, KuCoin was also banned by the Ontario Securities Commission, Canada. KuCoin is accused of violating regulatory regulations, therefore the Securities Commission prohibits and imposes a fine of US $ 1.6 million (around Rp. 25 billion).

Returning to the Netherlands, KuCoin is not the only crypto exchange that has problems with DNB. Previously, the world's largest crypto exchange Binance also experienced similar problems. The Central Bank of the Netherlands imposed a fine of US$3.4 million on Binance for operating without a permit in the country.

Then, the bankruptcy of FTX had a negative impact on crypto companies where regulators and central banks tightened their crypto rules. In that case, the European Union recently approved the Market in Crypto Asset Regulation (MiCA) to regulate the industry among its member countries.

The rule requires crypto companies to comply with the same laws as banks. MiCA was proposed by US Senator Elizabeth Warren to tighten crypto industry rules.