In a significant enforcement action under the EU's Markets in Crypto-Assets (MiCA) regulation, Austria's Financial Market Authority (FMA) has ordered KuCoin's European entity to immediately cease all new business operations and customer onboarding. The directive, issued due to critical vacancies in the exchange's anti-money laundering (AML) and counter-terrorist financing (CFT) compliance departments, underscores the stringent, ongoing requirements of the new regulatory framework.
The core of the FMA's order mandates that KuCoin EU cannot acquire new clients in Austria or through its European passporting rights until it fills the identified compliance roles with qualified personnel. The regulator emphasized that the "effective staffing of these key functions is a prerequisite for the orderly conduct of business." Existing customers are reportedly unaffected and can continue to access accounts and execute trades.
This development marks a rapid reversal for KuCoin EU, which had recently achieved a strategic milestone by obtaining its MiCA license in November 2025. The license, which allows an exchange to 'passport' services across all 27 EU member states, is contingent on continuous adherence to strict operational standards. The FMA's action indicates that key compliance personnel departed after the license was granted, creating a governance gap that triggered regulatory intervention.
Industry analysts view this as a landmark case for MiCA enforcement, signaling that obtaining a license is merely an entry ticket. Maintaining robust internal governance structures is non-negotiable. The event places immediate operational and reputational pressure on KuCoin EU, which has stated it is "actively hiring experienced staff" to rebuild its compliance framework in Vienna. Sabina Liu, managing director of KuCoin EU, confirmed the firm is building a long-term governance model with local hires.
The broader impact resonates across the crypto industry, serving as a clear warning to other licensed exchanges about the necessity of continuous investment in compliance staffing and processes. It tests the practical implementation of MiCA's 'substance requirements,' which demand meaningful management and staff presence in an entity's home member state.
