KuCoin Halts New EU Business Over Compliance Staffing Issues
Austria's financial regulator has directed crypto exchange KuCoin to cease new business activities within the European Union due to insufficient staffing for anti-money laundering and sanctions compliance.
KuCoin has been instructed by Austria's financial market authority (FMA) to pause the onboarding of new customers and the initiation of new business within the European Union. This directive stems from the cryptocurrency exchange's failure to meet regulatory requirements concerning critical compliance personnel.
The FMA specifically mandated that KuCoin EU must appoint a dedicated anti-money laundering (AML) officer and a deputy. Furthermore, the exchange is required to appoint a sanctions compliance officer and a deputy to oversee adherence to international sanctions regimes.
The regulatory action underscores the increasing scrutiny on cryptocurrency platforms operating within the EU. Compliance with robust anti-financial crime frameworks, including AML and sanctions verification, is a prerequisite for maintaining operational licenses and continuing business activities.
By halting new EU business, KuCoin is compelled to address the identified staffing deficiencies in its compliance departments. This pause is a direct consequence of the exchange's inability to demonstrate adequate resources dedicated to preventing illicit financial activities and ensuring regulatory adherence.
Originally reported by CoinDesk.