Compliance Risks Mount as MiCA Transition Closes The EU's top anti-money laundering authority has put crypto firms on notice that the end of the MiCA transitional period is creating real comp
The EU's top anti-money laundering authority has put crypto firms on notice that the end of the MiCA transitional period is creating real compliance risks across the bloc. Mass user migration following the end of the Markets in Crypto-Assets Regulation (MiCA) transitional period could strain compliance at virtual asset service providers (VASPs) in the European Union, according to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA).
Szego made the remarks during a briefing with the European Parliament's Committee on Economic and Monetary Affairs. "Because we know customers will rush to withdraw, this will put additional pressure on these VASPs," she said. The warning applies in two directions. Firms winding down their EU operations could come under pressure as customers rush to withdraw, while licensed crypto companies could face onboarding challenges as they absorb new users.
The scale of the market shift is significant. Only 244 digital asset groups were allowed to serve EU customers from July 1, according to a list published by Europe's markets watchdog, a sharp fall from the 3,389 crypto firms that were serving EU customers under the old framework in May 2025.Over 1,738 firms had to cease operations because they lacked the required MiCA authorization.
MiCA's 18-month transitional period ended on July 1, requiring crypto asset service providers (CASPs) to hold licenses to continue serving EU customers.Ahead of that deadline, AMLA published an advisory note warning crypto firms about money laundering risks arising from the end of the transitional period, outlining measures for firms winding down their EU operations and licensed providers onboarding new customers to maintain AML controls during the transition.
Szego urged service providers to maintain efficient compliance procedures throughout the transition. The concern is not just procedural. AMLA recognizes that CASPs are exposed to significant money laundering and terrorist financing risks due to their technological features, cross-border operations, and anonymity-enhancing capabilities.
AMLA also signalled that its oversight of the sector is expanding. Szego said AMLA will publish a report before the end of the year on money laundering risks in the crypto sector and supervisory practices across the bloc.She added that the authority is also expanding its blockchain analytics capabilities to strengthen oversight of crypto-asset service providers.The report will assess how national authorities supervise CASPs and identify differences in supervisory practices across member states, with AMLA intending to use the findings to coordinate follow-up work with national regulators.
SourcesCoinTelegraph: AMLA Warns Customer Migration Could Strain Compliance at Licensed CASPsAMLA Official Statement: AMLA Expects High Standards Against Financial Crime in Crypto SectorCrypto Times: Where Are Crypto Users Going After MiCA Deadline?
