KuCoin Secures MiCA License in Austria
KuCoin has announced its successful acquisition of a Markets in Crypto-Assets (MiCA) license in Austria, allowing the cryptocurrency exchange to legally provide its services across 29 countries within the European Economic Area (EEA). The license, granted to KuCoin EU Exchange GmbH, reflects the company’s commitment to adhere to the European Union’s evolving regulations for crypto assets, fully taking effect in December 2024. MiCA aims to create standardized rules for crypto service providers operating within EU jurisdictions.
CEO’s Statement on Compliance and Trust
BC Wong, the CEO of KuCoin, described this achievement as a pivotal moment in the company’s ongoing efforts to strengthen trust and compliance in its operations. “Obtaining the MiCA license through our local entity is a significant accomplishment,” Wong stated. “The MiCA framework is recognized as having one of the highest levels of regulatory rigor globally, and we take pride in achieving this standard.”
Services and Regulatory Framework
With this new license, KuCoin EU will be able to offer a wide range of services, including trading and custody of digital assets, governed by a consistent regulatory framework across the region. MiCA legislation features key requirements such as:
- Ensuring sufficient capital
- Safeguarding customer assets
- Maintaining transparency in disclosures
- Obtaining approvals from relevant national authorities
Broader Regulatory Strategy
The licensing in Austria comes on the heels of KuCoin’s registration as a Digital Currency Exchange in Australia via AUSTRAC, a development announced in November. This aligns with KuCoin’s strategy to broaden its regulatory footprint, referred to as part of its expansive $2 billion Trust Project.
Commitment to Security and Compliance
Underlining its focus on security and compliance, KuCoin has achieved various certifications, including SOC 2 Type II and ISO 27001:2022, while also adhering to the Cryptocurrency Security Standard. Additionally, the exchange engages independent third parties to conduct proof-of-reserves audits, demonstrating its commitment to transparency.
Future of Crypto Regulation in the EU
Wong emphasized the significance of compliance, stating that it goes beyond regulatory obligations; it forms the bedrock of the company’s mission to provide secure and innovative services in the digital asset landscape. Under the MiCA framework, crypto asset service providers, issuers of asset-referenced tokens like stablecoins, and e-money tokens will be regulated. This licensing allows providers authorized in one EU country to offer their services throughout the entire EEA.
KuCoin EU’s move to secure MiCA compliance places it among a larger group of exchanges, including notable names like Coinbase, Kraken, and Bitstamp, all of which are striving to either secure licenses or exit the European market in light of the upcoming December 2024 deadline for MiCA implementation.
