Austrian regulator halts KuCoin expansion in Europe

The Austrian Financial Market Authority (FMA) has prohibited KuCoin EU Exchange GmbH from accepting new clients and offering new products or contracts, effective February 19 2026.

The measure affects new business activities, while existing operations remain under enhanced supervision.

The decision comes less than three months after the Vienna-based company received a license under the MiCA framework, allowing it to offer services across the European Economic Area through the “passporting” mechanism. The speed of the regulatory intervention highlights the heightened sensitivity of European supervisors to compliance issues.

Missing key compliance positions

According to the FMA, the action was triggered by serious deficiencies in internal control mechanisms related to anti-money laundering (AML), countering the financing of terrorism, and sanctions compliance.

The regulator established that KuCoin EU has not appointed the mandatory key personnel—including an AML officer and a sanctions compliance officer, as well as their deputies. Under the MiCA regulation and the Austrian anti-money laundering framework, these positions are mandatory for licensed crypto asset service providers.

Without approved and active holders of these functions, the FMA concluded that the company cannot continue to expand its operations.

License and subsequent swift intervention

KuCoin EU received MiCA authorization on November 27 2025, positioning itself as a fully regulated crypto provider within the EU. Less than 90 days later, the restrictive measure followed.

Prior to the regulator’s official announcement, the exchange had already suspended trading and deposits on February 4 2026, explaining the pause as “system improvements for stability.” In retrospect, the timeline raises questions about whether the operational halt was related to regulatory pressure.

Temporary ban, not license revocation

The FMA clarified that the measure is temporary and does not constitute a revocation of the license. The restrictions will remain in effect until the company restores full compliance by appointing qualified professionals to the missing positions.

KuCoin stated that they are actively seeking experienced professionals to restore their management structure in Austria and meet European supervisory standards.

As of late February 2026, the regulator’s order is in force but is not yet legally final, leaving room for procedural developments.

The case underscores the new reality for crypto companies in the EU: obtaining a MiCA license is only the beginning, and sustainable compliance is becoming a decisive factor for a long-term presence in the European market.