Regulator Bans KuCoin EU from Onboarding New Customers Over Compliance Failures
The Austrian Financial Market Authority (FMA) has imposed a new business ban on KuCoin EU Exchange GmbH, based in Vienna. The reason: the company no longer has the required key functions in the area of anti-money laundering and counter-terrorism financing. The measure has been in effect for several days, but the order is not yet legally binding.
Missing Key Positions as Reason for the Ban
According to the FMA’s findings, KuCoin EU Exchange GmbH no longer properly fills the positions of money laundering officer and deputy, as well as sanctions officer and deputy. However, these key functions are a central prerequisite for the proper operation of a crypto-asset service provider.
The FMA has ordered the company by official notice to immediately restore the lawful state. Until the aforementioned positions are properly filled, KuCoin EU may not enter into business relationships with new customers and may not conclude new contracts or products within the scope of existing business relationships.
KuCoin EU’s Response
On the KuCoin EU website, it is stated that trading and deposit services were already suspended on February 4, 2026 at 14:30 (UTC+1). The reason given is “improvement of system stability.” Customers are asked to await further updates.
The company, which operates between Vienna, Shenzhen in China, and Hong Kong, is currently seeking compliance and anti-money laundering specialists through job postings, including a new Head of Compliance and a Head of AML (Anti Money Laundering).
An official Statement of KuCoin says:
“Compliance is a core pillar of KuCoin EU’s long-term European strategy. Following recent personnel transitions involving two designated AML and sanctions compliance function holders in Austria, we proactively initiated recruitment and voluntarily suspended new customer onboarding in Europe prior to the FMA’s formal notice. Personnel mobility is a normal occurrence in regulated industries, and our response reflects our strict internal governance standards.Recruitment is progressing, and the relevant roles are expected to be filled within the near future . Upon completion of these appointments, the matter is expected to be resolved in line with supervisory procedures.
The matter remains contained and limited in scope and client assets remain secure and unaffected.”
Background of MiCA Licensing
The FMA granted KuCoin EU Exchange GmbH approval as a crypto-asset service provider on November 27, 2025. At that time, all required key functions were properly filled in accordance with the EU Regulation on Markets in Crypto-assets (MiCAR) and the Financial Market Anti-Money Laundering Act (FM-GWG).
The Chinese crypto exchange KuCoin, currently ranked 8th by trading volume worldwide, had, like several other international crypto companies, secured a MiCA license from the Austrian FMA. This license entitles it as a Crypto-Asset Service Provider (CASP) to offer crypto-assets to EU citizens. Without a MiCA license, crypto exchanges face a ban from the EU market from mid-2026 onwards.
Vienna as a Preferred Location for Crypto Exchanges
In addition to KuCoin, other international crypto exchanges such as Bybit and Bitget have chosen Vienna as the location for their EU business. The FMA has earned a reputation as a cooperative partner in MiCA licensing. KuCoin CEO BC Wong stated at the press conference for the launch of the EU offering: “The regulator is very friendly here.”
The regulated offering for European customers had only recently launched. At launch, KuCoin offered just over 50 crypto-assets for buying and selling, with the company acting as a broker rather than an exchange. With trading fees of a maximum of 0.1 percent, KuCoin positioned itself significantly below the fees of established providers such as Bitpanda (0.99 to 2.49 percent).
