KuCoin Crypto Exchange In Trouble

by Trendoinvest December 15, 2022 · Latest News / Cryptocurrency Guide / Wallet

KuCoin Crypto Exchange In Trouble? Dutch Central Bank Thinks So

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The cryptocurrency exchange KuCoin is allegedly operating unlawfully in the Netherlands, according to the Dutch Central Bank.

The cryptocurrency exchange KuCoin is allegedly operating in the Netherlands illegally, according to a statement released by the Dutch central bank on Thursday. KuCoin is a division of MEK Global Limited (MGL), a company with a Seychelles registration, claims a statement issued by the bank.

Lacks Legal Registration

Customers of the exchange, according to De Nederlandsche Bank (DNB), are not breaching the law, but they may be at a higher risk of being engaged in money laundering and illicit means of financing terrorism.

KuCoin, which does not have a license in the United States, is one of the world’s biggest cryptocurrency exchanges in terms of the trading volume.

It operates in over 200 countries and has one of the greatest user bases, owing mostly to its lower trading costs as compared to competitors. In the Netherlands, the exchange launched for operation in October 2019.

Proof Of Reserves

In other recent news, KuCoin, with the assistance of a major audit company Mazars, just revealed its proof-of-reserves to usher in transparency. Mazars’ study stated that KuCoin’s BTC, ETH, USDT, and USDC reserves are overcollateralized by 101%, 100%, 102%, and 101%, respectively.

When discussing its reserves, KuCoin CEO Johnny Lyu stated,

We respect our users’ faith in us as a people exchange and are committed to doing all in our power to promote openness in the business. Our partnership with Mazars is only one of the steps we are doing to make sure we keep our promise to our users.

As part of the collateralization audit, a select few criteria, including customers’ main, trade, margin, robot, contract, high-frequency trading, pool, risk, and trust accounts for BTC, ETH, USDT, and USDC, were examined.

Conclusion

The recent KuCoin hack and subsequent investigation have raised a lot of questions about the security and stability of the KuCoin crypto exchange. While it is too early to draw any definitive conclusions, it is clear that the KuCoin team has taken swift and decisive action to address the security issues and ensure the safety of customers’ funds. KuCoin has also implemented additional measures to strengthen its security and protect users’ assets. While it is still too soon to tell how this event will affect the KuCoin exchange in the long run, it is clear that they are taking the necessary steps to ensure the safety of their platform and users’ funds.

Disclaimer

Please bear in mind that the material in this article is not financial or investment advice. The information in this article is strictly the author’s opinion and should not be interpreted as trading or investment advice. We make no assurances about the completeness, trustworthiness, or accuracy of this content. The cryptocurrency market is notorious for its tremendous volatility and irregular moves. Before investing, any investor, trader, or the regular crypto user should perform comprehensive research and get familiar with any local regulations.