Key Crypto Developments: KuCoin Warning, Gemini Downtime, and More

KuCoin's Regulatory Challenges in the Netherlands

The Dutch Central Bank (DNB) has issued a stern warning to KuCoin for operating without necessary registration. The DNB highlighted that KuCoin, under MEK Global Limited, violates Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (AML/CFT) regulations. This situation raises concerns about the potential risks for users, including involvement in money laundering. The DNB has not yet disclosed any specific actions against KuCoin.

Gemini's Unexpected Downtime

Gemini, the crypto exchange managed by the Winklevoss twins, faced extended downtime during scheduled maintenance. The downtime, originally planned for a few hours, stretched due to several updates, leaving the exchange offline temporarily. Despite the disruption, Gemini assured users that accounts and funds remained secure. This incident follows a phishing attack targeting Gemini users after a data leak.

Japan’s Crypto Tax Reforms

Japan's ruling Liberal Democratic Party plans to ease the 30% tax on unrealized capital gains for cryptocurrency issuers. This proposal aims to improve the business environment for crypto companies. The new tax policy is expected to be finalized by the year-end and could be implemented in the next financial year starting April 1, 2023. This move is part of Japan's broader strategy to support the growth of its crypto industry.

CryptoQuant's Binance Audit

CryptoQuant's audit of Binance's reserves confirmed a strong financial position, reducing fears of an "FTX-like" incident. The audit revealed that Binance's BTC liabilities are over 97% collateralized by exchange assets. Although some critics questioned the depth of Binance's proof-of-reserves, CryptoQuant's findings provide a level of assurance. The audit also noted an increase in Binance's BTC reserves since the FTX collapse.

Amber Group's Funding Amidst Crypto Winter

Amber Group, a crypto trading firm, successfully raised $300 million in a Series C funding round. This move comes as the firm navigates the aftermath of FTX's collapse, which affected 10% of its trading capital. The funding, led by Fenbushi Capital US, is intended to support customers impacted by FTX-related losses. Amidst these developments, Amber Group has paused its Series B+ funding round and scaled back expansion plans, including staff reductions.