Headline: Austria’s FMA halts KuCoin EU from onboarding new customers after compliance staff exits — freeze remains until AML roles refilled
Austria’s financial regulator has ordered KuCoin’s European arm to stop taking on new customers and launching new products after the exchange lost key compliance personnel only months after receiving a Markets in Crypto Assets (MiCA) permit to operate across the EU.
In a statement, the Financial Market Authority (FMA) said KuCoin EU no longer has occupants in critical anti-money‑laundering (AML) and counter‑terrorist‑financing roles — specifically the AML officer and sanctions compliance officer positions and their deputies. Those roles were reportedly in place when the FMA granted KuCoin its MiCA licence in November, but “according to the FMA’s knowledge, this is no longer the case,” the regulator added.
The FMA’s order — effective immediately — bars KuCoin EU from:
- entering into any new business relationships with customers;
- agreeing new contracts or launching new products within the scope of existing customer relationships;
until the exchange appoints and properly staffs the required compliance reporting functions. “The effective staffing of these key functions is a prerequisite for the orderly conduct of business,” the FMA said.
KuCoin responded that it is filling the vacancies as part of an expansion of its Austrian compliance team. Sabina Liu, managing director of KuCoin EU, said the firm is focused on building “a governance framework that reflects the expectations of European regulators,” adding the company is “investing in experienced local compliance professionals” to support a “compliance‑first operating model.”
Why Austria matters
Austria — and Vienna in particular — has become a hub for crypto firms seeking to passport into the EU under MiCA. Several exchanges, including Bitpanda, Bybit and Bitget, have set up European bases in the country to take advantage of the streamlined EU authorization. KuCoin, founded in China in 2017 and headquartered in the Seychelles, is one of the world’s largest offshore exchanges and was among the early recipients of a MiCA licence last year.
The regulator’s move comes amid a period of strong growth for KuCoin: the platform was reported to have captured a record share of centralized exchange trading volume in 2025, surpassing $1.25 trillion in traded volume. Still, the FMA’s action highlights the regulatory demands tied to EU market access — particularly around AML and sanctions compliance — and underscores the operational consequences when critical compliance staff depart.
What to watch next
The immediate question is how quickly KuCoin EU can recruit qualified local compliance officers and deputies to satisfy the FMA. Once those posts are filled and verified, the freeze on new business should be lifted. Regulators and market participants will also be watching whether this disruption affects KuCoin’s EU growth plans, product rollouts and broader trust with institutional and retail clients in the region.
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