Austria Halts KuCoin EU Expansion Over Compliance Gaps

What Led To KuCoin EU Halt

The FMA took action after key compliance personnel became unavailable shortly after KuCoin EU secured its MiCA license on November 27, 2025. This license allowed KuCoin EU to operate across all EU member states using passporting rights, which enable regulated firms in one country to serve customers throughout the European Union.

However, MiCA and Austria’s Financial Markets Anti-Money Laundering Act require crypto asset service providers to maintain qualified compliance officers at all times. When KuCoin EU failed to meet this requirement, the regulator determined that the firm could not safely continue expanding its business.

Consequently, the regulator classified the staffing gap as a threat to orderly business conduct and imposed the KuCoin EU halt to prevent further operational expansion until compliance roles are filled.

European regulators have taken similar actions in the past. For example, Binance faced operational restrictions and licensing challenges across several EU countries in 2023 due to governance and compliance concerns. Globally, South Korea forced dozens of crypto exchanges to shut down in 2021 after they failed to meet anti-money laundering and banking compliance standards.

These precedents show that regulators now treat crypto exchanges similarly to traditional financial institutions, with strict expectations for governance, staffing, and risk management.

KuCoin’s Remediation Efforts

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KuCoin EU responded quickly to the regulator’s order. On February 20, 2026, the company announced plans to expand its compliance and governance team in Austria.

The exchange has already begun recruiting experienced professionals to fill the anti-money laundering and sanctions compliance roles. KuCoin EU emphasized that strengthening its compliance structure aligns with its long-term strategy. Then it operates as a fully regulated exchange under MiCA.

The company also expressed confidence that resolving the staffing gaps will allow regulators to lift the restriction. However, until KuCoin EU fills the required positions and satisfies regulatory requirements, the ban on new business activities will remain in effect.

Implications for the KuCoin EU halt

The KuCoin EU halt highlights the strict enforcement environment under MiCA across the European Union. Regulators now monitor licensed crypto exchanges continuously, not just during initial approval.

For crypto exchanges, this development reinforces the importance of maintaining robust compliance infrastructure, especially in regulated markets like the EU. Even temporary gaps in compliance staffing can trigger immediate regulatory intervention.

At the same time, strict enforcement strengthens trust in the regulated crypto ecosystem. Institutional investors and traditional financial firms prefer operating in environments with clear rules and enforcement. Therefore, MiCA enforcement may ultimately support long-term industry growth.