It was surprising when crypto exchange company KuCoin, a business subsidiary of MEK Global Limited (MGL) was sued by the Dutch central bank for not having proper registration while operating in the country.
KuCoin users are reportedly not breaking the law, but are most likely involved in money laundering and fraudulent activities, commented De Nederlandsche Bank (DNB).
Although KuCoin does not have a license in the United States (US), the company in terms of trading volume is one of the leading crypto exchangers in the world.
It is also worth noting that KuCoin's implementation of low trading fees compared to other companies has given it the advantage of being the company with the highest number of users in its 200 countries of operation.
Meanwhile, KuCoin has signed an agreement with the leading audit company, Mazars to launch proof-of-reserves* which can increase the transparency of its ecosystem.
*A way to verify that an institution (e.g., a crypto exchange) holds sufficient reserves to support all customer balances.
The report released by Mazars also saw that the reserves of Bitcoin (BTC), Ethereum (ETH), USDT and USDC Kucoin have exceeded the collateral with 101%, 100%, 102% and 101% respectively.
According to Johnnya Lyu, the Chief Executive Officer (CEO) of KuCoin, he felt that his collaboration with Mazars was one of their steps to further benefit users with an effective method.
