KuCoin EU Told to Stop Onboarding as Austria Flags Compliance Staffing Gaps

TLDR

• Austria’s financial regulator ordered KuCoin EU to stop all new business in the European Union.
• The FMA stated that KuCoin EU no longer has the required AML and sanctions compliance officers.
• The regulator confirmed that the freeze will remain until the company restores all key compliance positions.
• KuCoin said it is actively hiring experienced staff to rebuild its compliance structure in Austria.
• The exchange can continue servicing existing customers, but cannot onboard new users or sign new contracts.

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Austria’s Financial Market Authority ordered KuCoin EU to stop new EU business after it reported missing compliance staff, and the agency confirmed the freeze would remain until key roles were restored. The directive followed months of operational expansion. The regulator stated that the required AML and sanctions officers no longer held their posts and stressed the need for immediate action. KuCoin EU said it was hiring new staff, and it pledged to rebuild its framework.

Compliance Freeze on New Activity

The FMA issued the order after reviewing staffing gaps, and it said the firm lacked approved AML and sanctions officers. The regulator confirmed the prohibition covered new customers, and it also blocked new contracts.

KuCoin EU retained permission to service existing clients, and it had to follow strict oversight, and the agency said this rule applied across its MiCA scope. The exchange acknowledged the issue, and it stated that recruitment was underway.

The FMA warned that full staffing remained required under Austrian law, and it repeated that oversight functions must stay active.

The order arrived soon after the exchange gained its MiCA authorization, and it highlighted the importance of continuous compliance.

KuCoin Response and EU Licensing

KuCoin said it was expanding its compliance team, and it aimed to restore all required positions quickly. Its Vienna office continued internal adjustments, and it emphasized long-term structure.
Sabina Liu, managing director of KuCoin EU, said the firm was building a governance model, and she added that experienced local hires would support stability.

The firm received its MiCA license in November, and it confirmed that key posts were staffed at that time. However, the FMA said those conditions changed, and it required immediate correction. The regulator repeated that all AML and sanctions roles must meet FM-GwG rules, and it said the ban would remain until appointments were validated.

Vienna continued to attract crypto firms such as Bitpanda, Bybit, and Bitget, and each pursued EU access. The FMA monitored these platforms, and it upheld MiCA standards. KuCoin EU now faced pressure to restore its compliance roster, and it awaited FMA confirmation before resuming new activity.

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