Austria Orders KuCoin to Halt New EU Business Over Compliance Staffing Shortfalls
KuCoin EU is the operating entity behind crypto exchange KuCoin’s expansion in the European Union and secured approval under the bloc’s Markets in Crypto-Assets regulation, or MiCA, in November 2025. The authorization enabled cross-border services, but continued operations remain subject to anti-money laundering and sanctions rules, making staffing shortfalls a direct threat to its ability to conduct business.
Austria’s Financial Market Authority, or FMA, recently ordered KuCoin EU to stop taking on new business in the EU because qualified anti-money laundering and sanctions compliance officer positions were vacant. The regulator did not order a complete halt to services for existing customers. After the ban was announced, KuCoin EU hired a new AML chief as it sought to fill the critical staffing gap and persuade the regulator to lift the restriction.
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The history behind this eventKuCoin Builds Bank-Grade AML System Ahead of EU MiCA Deadline
The European Union’s Markets in Crypto-Assets Regulation (MiCA) became fully applicable on December 30, 2024, with the maximum transition period for crypto-asset service providers running through July 1, 2026. To continue serving EU customers, KuCoin EU must strengthen customer due diligence, transaction monitoring and suspicious-activity reporting, making its anti-money-laundering system critical to licensing and operational continuity.
Ahead of the transition deadline, KuCoin EU announced that it was building a “bank-grade” AML framework integrating identity verification, risk scoring and transaction monitoring into a consistent process. The system is intended to meet MiCA requirements for security and transparency. The company has not disclosed the investment amount, processing capacity or formal launch date; the key confirmed deadline remains July 1, 2026.
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