KuCoin EU Halts New Business Due to Compliance Staffing Issues
- Austria’s financial regulator, the FMA, has prohibited KuCoin EU from onboarding new customers.
- The prohibition follows the loss of key compliance staff responsible for anti-money laundering (AML) and terrorist financing roles.
- KuCoin EU received its Markets in Crypto Assets (MiCA) permit in November but now lacks essential compliance officers.
- The freeze on new business will remain until the necessary compliance positions are filled.
- KuCoin aims to enhance its compliance team in Austria to meet regulatory expectations and ensure long-term stability.
This action underscores the importance of maintaining adequate staffing for compliance roles within crypto exchanges, especially after obtaining licenses like MiCA. Austria has become a favored hub for crypto firms seeking access to the European market, with other exchanges also establishing operations there.
As a result of these staffing issues, KuCoin EU is currently barred from engaging with new customers until it resolves these compliance shortfalls. (Source)
