Austria’s financial regulator has announced that it has banned KuCoin’s European arm from conducting new business and onboarding customers, after the company lost key compliance staff just months after receiving permission to operate across the European Union.
KuCoin EU does not have a significant role in anti-money laundering (AML) or counter-terrorist financing roles, according to a statement from regulator FMA, which granted the license in November. The freeze will last until the company appoints the necessary compliance reporting staff.
“Effective staffing of these critical functions is a prerequisite for orderly business operations,” the FMA said. The exchange said it is “immediately prohibited from entering into business relationships of any kind with new customers, and from entering into new contracts or new products within the scope of existing business relationships, until these important roles are properly fulfilled.”
Kucoin said the position is being filled as part of the Austrian compliance team expansion.
“Our priority in Austria is to establish a governance framework that reflects the expectations of European regulators and the responsibilities we have towards the EU market,” said Sabina Liu, Managing Director of KuCoin EU. “By investing in experienced local compliance professionals, we are strengthening our compliance-first operating model, which is designed for long-term stability and transparency.”
Austria has become a popular destination for crypto exchanges looking to gain passport to Europe via MiCA, with companies such as Bitpanda, Bybit and Bitget setting up bases in Vienna.
When the license was granted, the FMA stated that the primary duties of the AML Officer and Sanctions Compliance Officer and their respective representatives were filled in accordance with MiCA and the Financial Markets Money Laundering Prevention Act (FM-GwG; Finanzmarkt-Geldwäschegesetz).
“According to FMA’s knowledge, this is no longer the case,” the FMA said.
