The Central Bank of the Netherlands, De Nederlandsche Bank (DNB), has issued a warning to KuCoin. It states that the crypto exchange has been operating without legal registration in the Netherlands.

According to the DNB, MEK Global Limited (MGL), which trades under the name KuCoin, violates the country’s Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (AML/CFT) regulations.

The central bank also notes that the KuCoin has been “illegally offering exchange services between virtual currencies and fiat currencies and offering custodial wallets.”

According to the report, KuCoin and MGL customers do not violate the law. However, using the exchange “may increase the risk of customers becoming involved in money laundering or terrorist financing.”

When similar charges were filed against Binance in 2021, the exchange was made to pay an “administrative fine” of more than three million euros.

Gemini, the crypto exchange led by the Winklevoss twins, experienced hours of downtime on Thursday due to scheduled exchange maintenance scheduled for 10:00pm Thursday, December 15th.

After the Gemini Spaceship upgrade began, the exchange sent seven updates extending the upgrade by five hours and 30 minutes. Although a notice said that all user interfaces and trading would be unavailable during that time, the exchange went offline.

Although the exchange did not explain the reason for the downtime, they posted a notice saying, “Gemini is investigating reports of potential service disruptions. All customer accounts and funds remain completely secure.”

The maintenance was set to finish on December 16th at 5:30am. Full functionality has now been restored to the exchange. 

The Liberal Democratic Party, Japan’s ruling party, has approved a proposal to exempt companies issuing cryptocurrencies in the country from the 30% taxes on unrealized capital gains for tokens they retain on their books.

According to reports, the Prime Minister’s Administration is expected to finalize its annual tax policy guidelines before the end of this year. Tax code amendments are usually submitted to parliament in January.

The new tax regime is expected to affect Japan’s next financial year starting on April 1, 2023. In Japan, crypto issuers are required to pay a set 30% corporate tax rate on their holdings, even if they haven’t realized a profit through a sale.

Japan’s ruling party seeks to improve business conditions for companies issuing cryptocurrencies by relaxing its tax regime.

On-chain analytical service CryptoQuant has conducted an audit on the reserves of Binance. They concluded that the world’s largest cryptocurrency exchange’s reserves are overcollateralized.

CryptoQuant reports that “Binance’s BTC liabilities (customers deposits) are 97% collateralized by the exchange assets. Collateralization increases to 101% when the BTC lent to customers is accounted for.”

Although Binance released a proof-of-reserves stating its holdings, the crypto community criticized the report for being an “agreed-upon procedure” and not a full audit.

The analytics firm also that Binance’s reserves are “clean,” referring to how Binance is not exclusively reliant on its native exchange token, BNB. CryptoQuant gives Binance an 88.95% clean rating, with OKX being the highest rated at 100%.

The report further adds confidence to Binance, whose reserves were also confirmed by a Mazars independent audit.

Embattled crypto trading firm Amber Group has announced the successful raising of $300 million in a Series C round to cope with the spreading FTX contagion and the ongoing crypto winter.

When FTX imploded in November, Amber Group had 10% of its trading capital locked in the exchange. In addition, other products “experienced significant drawdowns as an aftermath of the FTX default.”

According to the announcement, the funding round was led by Fenbushi Capital US, alongside other undisclosed crypto-native investors and family offices. However, previous funding rounds included Temasek, Sequoia Capital China, and Coinbase.

Amber Group’s Series B+ round, which would have taken the valuation of the crypto trading firm to $3 billion, has now been paused after a “partial closing” of $50 million, as it prioritizes the Series C round.

The money raised from the round will go to customers who lost money on Amber’s product due to FTX’s collapse. This includes troubled crypto lender Vault’s CEO, to whom Amber Group owes $130 million.