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Crypto exchange KuCoin is making fresh moves to strengthen its compliance team after Austria’s financial regulator blocked the company from onboarding new customers and launching new products across its European operations. The latest development comes as the exchange reportedly hired a new Anti-Money Laundering (AML) chief in an attempt to satisfy regulators and restore confidence in its European expansion strategy.
The issue began after Austria’s Financial Market Authority (FMA) discovered that KuCoin EU no longer had some of the mandatory compliance positions required under the European Union’s Markets in Crypto-Assets (MiCA) regulation. According to reports, key AML and sanctions monitoring officers had left the company, creating gaps in its compliance structure. As a result, the regulator ordered KuCoin’s Vienna-based European arm to stop accepting new customers and suspend new business activities until those positions were properly filled.
KuCoin EU explained that the departure of compliance officers was part of normal staff movement within regulated industries and stated that recruitment efforts had already started before the regulator’s official notice. The company also stressed that the issue was limited in scope and did not affect customer funds or existing user assets.
The hiring of a new AML chief is now being viewed as a major step toward resolving the regulatory standoff. Reports suggest KuCoin is aggressively rebuilding its compliance structure to meet MiCA standards and reassure European authorities that the exchange remains committed to operating legally within the EU framework.
The situation highlights how strict Europe’s new MiCA regulations have become for crypto exchanges. Even companies that already secured licenses can still face immediate restrictions if regulators believe their governance, staffing, or AML systems fall below approved standards. Industry analysts believe this case could become one of the first major examples showing that MiCA compliance is not just about obtaining a license, but continuously maintaining operational standards.
KuCoin had previously positioned Austria as its European headquarters after receiving MiCA approval. The exchange saw the region as a major growth opportunity and appointed former London Stock Exchange executive Sabina Liu to lead its European expansion plans. However, the recent enforcement action has temporarily slowed that momentum.
Despite the setback, KuCoin remains optimistic that the restrictions will eventually be lifted once regulators are satisfied with the company’s updated compliance structure. The exchange continues to assure users that existing services and customer assets remain safe while it works to fully resolve the matter with Austrian authorities.
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