Austria’s financial regulator said it banned the European arm of KuCoin from conducting new business and onboarding customers after the crypto exchange lost key compliance staff just months after receiving a Markets in Crypto Assets (MiCA) permit to operate across the EU.
KuCoin EU no longer has key function holders in anti-money laundering (AML) and prevention of terrorist financing roles, according to a statement from the regulator, the FMA, which awarded the license in November. The freeze will last until the firm appoints the necessary staff for compliance reporting, it said.
“The effective staffing of these key functions is a prerequisite for the orderly conduct of business,” the FMA said. The exchange is “prohibited with immediate effect from entering into business relationships of any kind with new customers and from entering into new contracts or new products within the framework of existing business relationships until these key functions have been duly completed.”
Kucoin said the positions are being filled as part of an expansion of the compliance team in Austria.
“Our priority in Austria is to establish a governance framework that reflects the expectations of European regulators and the responsibility we bear towards the EU market,” said Sabina Liu, CEO of KuCoin EU. “By investing in experienced local compliance professionals, we are strengthening a compliance-first operating model designed for long-term stability and transparency.”
Austria has become a popular destination for crypto exchanges looking to access Europe via MiCA, with companies including Bitpanda, Bybit and Bitget setting up bases in Vienna.
When the license was granted, the FMA said the key functions of AML Officer and Sanctions Compliance Officer and their respective deputies were filled in accordance with MiCA and the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäschegesetz).
“To the FMA’s knowledge, this is no longer the case,” the FMA said.
