Austria’s financial regulator said it has banned KuCoin’s European arm from conducting new business and onboarding customers after the crypto exchange lost its key compliance staff just months after obtaining a Crypto Asset Markets (MiCA) permit to operate across the European Union.
KuCoin EU no longer has key function holders in anti-money laundering (AML) and preventing terrorism financing, according to a statement from the regulator, the FMA, which granted the license in November. The freeze will last until the company appoints the necessary staff to compile compliance reports, he said.
“Effective staffing of these key functions is a prerequisite for the orderly conduct of business,” the FMA said. The Exchange is “prohibited from entering into business relationships of any kind with new customers and from entering into new contracts or new products within existing business relationships until these key functions are properly completed.”
Kucoin said the positions were being filled as part of the 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 European market,” said Sabina Liu, Managing Director of KuCoin EU. “By investing in experienced local compliance professionals, we are strengthening a compliance-focused operating model designed for long-term stability and transparency. »
Austria has become a popular destination for crypto exchanges looking to gain a passport to Europe via MiCA, with companies such as Bitpanda, Bybit and Bitget establishing bases in Vienna.
When the license was granted, the FMA stated that the key functions of AML Manager and Sanctions Compliance Officer and their respective deputies were carried out in accordance with MiCA and the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäschegesetz).
“To the best of the FMA’s knowledge, this is no longer the case,” the FMA said.
