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EU Informs KuCoin of Business Suspension Amid Compliance Staffing Issues

Austria's financial regulator has mandated that KuCoin halt its new businesses within the European Union due to critical shortfalls in compliance staffing.

The cryptocurrency exchange has lost essential personnel responsible for anti-money laundering and the prevention of terrorist financing.

This decision comes just months after KuCoin secured a Markets in Crypto Assets (MiCA) permit to operate across Europe.

The FMA stated that the suspension will remain in place until KuCoin adequately fills the necessary compliance positions.

"Effective staffing of these functions is crucial for the orderly conduct of business," the regulator emphasized.

In response, KuCoin has announced plans to enhance its compliance team in Austria.

Sabina Liu, managing director of KuCoin EU, affirmed the company's commitment to meeting European regulatory expectations.

Austria is increasingly seen as a favorable location for crypto exchanges seeking EU access through MiCA, with several other firms establishing operations there.

The FMA previously acknowledged that the key compliance positions were filled, but a recent assessment indicated this is no longer the case.

As KuCoin works to resolve these staffing issues, the future of its operations in the EU remains uncertain.