The European branch of cryptocurrency exchange KuCoin has taken steps to enhance its compliance and anti-money laundering (AML) capabilities after Austria’s Financial Market Authority (FMA) ordered it to suspend operations in the European Union. This decision stemmed from a deficiency in staffing dedicated to AML and compliance functions.
In response to the FMA’s concerns, KuCoin EU announced the appointment of Carmen Kleinhans as its new anti-money laundering officer. The exchange has also expanded its compliance team by hiring seasoned professionals Stephan Klinger and Bernd Träxler as deputy anti-money laundering officers.
Sabina Liu, Managing Director of KuCoin EU, emphasized the importance of open communication with the FMA. In a recent statement, she noted, “We always maintain a very transparent, open dialog with them, and the other way around as well. They have been very honest, transparent, and very supportive of us.” Liu highlighted that since the regulatory action in February, the company has focused on bolstering its compliance efforts, resulting in a significantly larger team.
KuCoin has faced challenges in recent months, including a prohibition from operating in the United States following an order from the Commodity Futures Trading Commission (CFTC). Additionally, the exchange encountered regulatory issues in Dubai for operating without the necessary licenses.
While Liu did not specify when KuCoin EU might resume its operations in Europe, she indicated that discussions with the FMA are ongoing. The exchange’s recent appointments are part of a broader strategy to align with regulatory expectations and restore its standing in the European market.
In response to regulatory demands, KuCoin EU has appointed new compliance officers to address staffing deficiencies. The exchange aims to strengthen its AML capabilities to resume operations in Europe following a suspension by Austria's FMA.