Austria's FMA bans Kucoin EU over anti-money laundering, compliance staff shortfalls

CoinDesk

by Ian Allison

February 23, 2026

AI-Generated Deep Dive Summary

Austria's Financial Markets Authority (FMA) has banned KuCoin EU from conducting new business and onboarding customers due to staffing shortages in critical compliance roles related to anti-money laundering (AML) and sanctions. The regulator issued the prohibition after discovering that KuCoin EU no longer had key function holders for AML, terrorist financing prevention, and sanctions compliance, despite having been granted a Markets in Crypto Assets (MiCA) license in November. The ban will remain in effect until the exchange appoints qualified personnel to fill these essential positions. The FMA emphasized that staffing these key functions is a prerequisite for operating compliantly under MiCA regulations. KuCoin EU has responded by expanding its compliance team in Austria, acknowledging the importance of meeting European regulatory standards. Sabina Liu, Managing Director of KuCoin EU, stated that the company is prioritizing the establishment of a governance framework aligned with regulatory expectations and long-term stability. Austria has become a popular hub for crypto exchanges seeking to expand across Europe via MiCA, with firms like Bitpanda, Bybit, and Bitget also establishing bases in Vienna. The FMA noted that while KuCoin EU initially met the required staffing standards when it received its license, this is no longer the case. This development highlights the growing scrutiny of crypto exchanges by regulators, particularly in areas such as AML compliance and sanctions adherence. It serves as a cautionary tale for other crypto firms operating in Europe, underscoring the importance of maintaining adequate compliance frameworks even after obtaining necessary permits. The situation also reflects the increasing regulatory focus on the crypto industry, as authorities seek to mitigate risks associated with money laundering and financial crime. For readers interested in crypto, this story underscores the evolving regulatory landscape and the potential risks for crypto exchanges that fail to meet compliance requirements. It also demonstrates how regulators are enforcing MiCA rules, which

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Originally published on CoinDesk on 2/23/2026