By
Bena Ilyas
April 18th, 2024
KuCoin cryptocurrency exchange is one of the top ten by daily traded volume with verified reserve information.
Following the FTX implosion, the Dutch government, through the De Nederlandsche Bank (DNB), is closely monitoring the cryptocurrency market in the Netherlands and has highlighted that MEK Global Limited (MGL), doing business as KuCoin, does not have an operating license. As such, the DNB has indicated that MGL is not in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act set for customer protection.
KuCoin in the Netherlands
According to the bank, KuCoin customers have not violated any law; thus, the risk of money laundering and terrorist financing spikes. As such, KuCoin and its parent company are urged to comply with local regulations similar to other regulated crypto companies.
DNB warns against MEK Global Limited, doing business as KuCoinhttps://t.co/kgh6XVkYbI
— De Nederlandsche Bank (@DNB_NL) December 15, 2022
Some of the crypto service providers regulated in the Netherlands include Bitstamp Europe S.A., Bitonic B.V., Bitmymoney BV, Bitdenex B.V., BTC Direct Europe BV, and AMDAX BV, among others.
According to Dutch laws, regulated crypto service providers can exchange money – such as euros and dollars – for virtual currencies such as Bitcoin and Ether. Additionally, regulated crypto service providers in the country can offer customers a custodial wallet for storing such currencies.
KuCoin and Crypto Market Regulations
According to aggregate data from Coingecko, the KuCoin cryptocurrency exchange is one of the top ten by daily traded volume with verified reserve information. As a centralized cryptocurrency exchange established in 2014 and registered in Seychelles, KuCoin provides trading services for 732 coins and 1273 trading pairs. Reportedly, the company recorded a 24-hour trading volume of approximately $307,885,863.15, with the most active trading pair BTC/USDT.
The cryptocurrency exchange has grown to over 200 countries, whereby it has amassed more than 20 million global users. However, competition from top exchanges like Binance and Coinbase has significantly shrunk KuCoin’s ability to widen its global reach. Moreover, worldwide regulators are keen to license centralized exchanges in fear of unforeseen rug pulls.
As such, cryptocurrency regulations are set to play a crucial role in the mainstream adoption of digital assets in the coming years. Furthermore, large tech companies with access to billions of monthly active users are heavily regulated to adopt digital assets for payment.
As geopolitical tensions rise between Russia and the western superpowers, uniformly regulating crypto assets will remain significantly hampered. Additionally, some countries – El Salvador and the African Central Republic – have adopted the Bitcoin market as a legal tender. Whereas others like Brazil have accepted cryptocurrency as a form of payment.
The call for global crypto regulations has significantly increased fear of further capitulation in the industry. Mind you, the crypto economy has lost over $2.2 trillion in the past twelve months.