KuCoin Prohibited from New EU Operations Over Compliance Shortcomings
# KuCoin Ordered to Stop New EU Operations Due to Compliance Issues
## Austrian authorities have mandated that KuCoin cease all new customer engagements due to staffing deficiencies.
The Financial Market Authority (FMA) of Austria has instructed cryptocurrency exchange KuCoin to halt any new business activities within the European Union. This action was taken because the company has not properly staffed its compliance and anti-money laundering units, which are essential for regulatory adherence.
According to the FMA, KuCoin has been "prohibited with immediate effect from concluding business relationships of any kind with new customers and from concluding new contracts or new products within the scope of existing business relationships until these key functions have been appropriately filled." The agency emphasized that "the effective staffing of these key functions is a prerequisite for the orderly conduct of business."
Sabina Liu, managing director of KuCoin EU, acknowledged the importance of compliance, stating, "Our priority in Austria is to establish a governance framework that reflects the expectations of European regulators and the responsibility we carry toward the EU market." However, the FMA declared, "According to the FMA's knowledge, this is no longer the case," indicating that the necessary framework has yet to be established.
The FMA's actions reinforce the significance of stringent compliance measures in the rapidly evolving cryptocurrency market, particularly within the European landscape, where regulatory standards are being heightened.
This report is for informational purposes only and is not financial advice.