Austria’s regulator slaps new business ban on KuCoin’s EU exchange

CoinTelegraph

by Christina Comben

February 23, 2026

AI-Generated Deep Dive Summary

Austria's Financial Market Authority (FMA) has suspended new business activities at KuCoin EU, prohibiting the exchange from onboarding new customers or finalizing new contracts until key compliance functions are addressed. The regulator cited breaches in internal organizational requirements related to Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and financial sanctions compliance. This decision came despite KuCoin EU having recently obtained a MiCA license, which is mandatory for crypto asset service providers operating within the European Union. The FMA's action was triggered by gaps in KuCoin EU's AML and sanctions oversight frameworks. Specifically, the regulator identified shortcomings in the exchange's internal controls and governance structures. Sabina Liu, Managing Director of KuCoin EU, acknowledged that two compliance professionals responsible for these critical functions had "recently departed." She noted that such turnover is common in regulated industries but emphasized that the company remains committed to rectifying the issues and restoring compliance. This development highlights the growing scrutiny faced by cryptocurrency exchanges under the MiCA framework. The FMA's decision underscores the importance of robust compliance programs and the potential consequences of failing to meet regulatory expectations. For KuCoin EU, the ban serves as a cautionary tale about the stringent requirements of operating in regulated markets, particularly in the crypto and blockchain sectors. The case also raises questions about the challenges faced by crypto exchanges in maintaining compliance amid dynamic regulatory environments and workforce changes. As the industry continues to evolve, adherence to AML, CTF, and sanctions regulations will remain critical for businesses seeking to operate legally within the EU and other global markets.

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Originally published on CoinTelegraph on 2/23/2026