KuCoin has made significant strides in expanding its regulated presence across the European Union by securing a Markets in Crypto-Assets (MiCA) license in Austria. This important milestone has been granted to KuCoin’s local entity, KuCoin EU Exchange GmbH, enabling the platform to provide digital asset services in 29 countries within the European Economic Area (EEA) under the EU’s unified regulatory framework.
The MiCA framework, which became fully effective in December 2024, aims to establish uniform requirements for crypto service providers across the EU. With its newly awarded Austrian authorization, KuCoin EU Exchange GmbH can now offer trading, custody, and a range of other digital asset services across the 29 EEA nations through MiCA’s passporting mechanism.
To comply with MiCA, crypto exchanges must adhere to strict capital adequacy standards, maintain segregation of customer assets, and follow transparency rules, all of which necessitate obtaining approvals from national regulators. KuCoin has reported that it has implemented a series of security and compliance measures to meet these obligations. These measures include certifications such as SOC 2 Type II, ISO 27001:2022, ISO 27701, and CCSS, along with audits conducted by third-party entities to prove its reserve holdings.
According to KuCoin’s CEO BC Wong, the authorization aligns with the company’s long-term compliance strategy and reflects a commitment to the standards set in the MiCA regulatory framework. This move is not just about gaining regulatory approval; it signifies a path towards greater transparency and security in the cryptocurrency market.
With this MiCA license, KuCoin is now positioned to operate its digital asset services across 29 EEA countries. This places the exchange alongside other major players in the market, such as Coinbase, Kraken, and Bitstamp, all of whom secured similar authorizations ahead of the MiCA regulation’s comprehensive rollout. The license aims to enhance KuCoin’s capacity to serve users within a unified regulatory environment that ensures consistent operational standards across the various EU member states.
This recent development is also connected to KuCoin’s ambitious “$2 Billion Trust Project,” which encompasses efforts to bolster its compliance systems and follows the exchange’s recent registration with AUSTRAC in Australia in November. As part of this transition, users in the EEA (excluding those from Malta) will gain access to Imappearing KuCoin EU’s MiCA-compliant platform. However, new registrations on KuCoin Global for users in the region will cease in light of this shift.
KuCoin’s acquisition of the MiCA approval paves the way for broader implications within the cryptocurrency sector as exchanges adapt to the increasing regulatory scrutiny. MiCA brings enhanced transparency standards surrounding asset protection and operational oversight for investors. Additionally, this regulatory framework offers exchanges a consistent operational structure that simplifies cross-border transactions.
As the European market continues to formalize its regulatory stance on digital assets, KuCoin’s adherence to MiCA positions it strategically against other regulated exchanges. The company has expressed intentions to further expand and scale its compliance programs as it ventures into additional jurisdictions, reaffirming its commitment to maintaining a leading role in the evolving cryptocurrency landscape.
