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Kucoin instructed to suspend new operations in the EU due to insufficient compliance personnel.
Austria’s financial authority stated that KuCoin EU is required to appoint an anti-money-laundering officer and a deputy officer, along with a sanctions compliance officer and a deputy.
Vienna, Austria (EM80/Pixabay)
What to know:
- The Austrian authority indicated that KuCoin EU lacks appropriate key function holders for anti-money laundering, terrorist financing compliance, and financial sanctions roles.
- The FMA provided KuCoin with approval under the Markets in Crypto Assets regime in November.
Austria’s financial authority announced that it has restricted the European division of KuCoin from initiating new business activities and onboarding customers after the cryptocurrency exchange lost essential compliance personnel shortly after receiving a Markets in Crypto Assets (MiCA) license to operate within the European Union.
According to a statement from the FMA, KuCoin EU no longer has key function holders in anti-money laundering (AML) and terrorist financing prevention roles. The suspension will remain in effect until the company appoints the required compliance reporting personnel.
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“The proper staffing of these essential roles is crucial for the orderly conduct of business,” the FMA stated. The exchange is “immediately prohibited from establishing business relationships of any kind with new customers and from entering into new contracts or products under existing business relationships until these key roles have been adequately filled.”
KuCoin indicated that these positions are being filled as part of an expansion of the compliance team in Austria.
“Our focus in Austria is to build a governance structure that aligns with the expectations of European regulators and the responsibilities we hold toward the EU market,” remarked Sabina Liu, managing director of KuCoin EU. “By engaging experienced local compliance experts, we are strengthening a compliance-first operational model aimed at ensuring long-term stability and transparency.”
Austria has emerged as a favored location for cryptocurrency exchanges seeking to enter the European market through MiCA, with firms like Bitpanda, Bybit, and Bitget establishing operations in Vienna.
At the time the license was issued, the FMA noted that the key roles of AML officer, 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).
“As per the FMA’s information, this is no longer the situation,” the FMA stated.
