EU AMLA flags compliance risks as MiCA drives customer migration

EU AML watchdog has warned that the end of MiCA’s transitional period has increased the risk of compliance pressure on crypto firms as customers move to licensed providers across the bloc.

Summary

• EU anti money laundering chief warned that customer migration after MiCA could strain compliance at crypto firms.
• AMLA said licensed providers should maintain strong anti money laundering controls as they onboard new users.
• The authority plans to publish a crypto money laundering risk report this year while expanding its blockchain analytics capabilities.

According to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), crypto companies exiting the European Union market could face a surge in customer withdrawal requests, while licensed virtual asset service providers (VASPs) may struggle to onboard large numbers of new users without weakening compliance standards.

Speaking during a Wednesday briefing before the European Parliament’s Committee on Economic and Monetary Affairs, Szego said firms winding down operations should be prepared for increased customer activity as users transfer their assets before services end. She added that licensed providers absorbing those customers should keep anti-money laundering procedures effective throughout the transition.

The warning comes after the European Union’s 18-month Markets in Crypto-Assets (MiCA) transitional period ended on July 1, requiring crypto-asset service providers (CASPs) to obtain authorization to continue serving customers in the bloc.

Earlier, the European Securities and Markets Authority (ESMA) instructed firms that remained unauthorized after the deadline to take immediate steps to wind down their EU operations, leaving customers to migrate to licensed providers.

AMLA prepares next stage of MiCA oversight

Before the July 1 deadline, AMLA issued an advisory note outlining money laundering risks linked to the end of the transitional period. According to the authority, the guidance sets out expectations for both firms closing their EU businesses and licensed providers accepting new customers so that anti-money laundering controls remain effective during the migration.

During the parliamentary briefing, Szego said AMLA plans to publish a report before the end of the year examining money laundering risks across the crypto sector alongside supervisory practices used by national authorities. She added that the authority is expanding its blockchain analytics capabilities to strengthen oversight of crypto-asset service providers.

According to Szego, the report will compare how regulators supervise CASPs across member states and identify differences that could require coordinated follow-up work between AMLA and national authorities.

The latest comments build on Europe’s post-licensing supervisory efforts. On July 11, ESMA launched a Common Supervisory Action covering a sample of MiCA-authorized crypto custodians to examine operational resilience in areas including private key management, transaction controls, incident response and reliance on third-party technology providers.

ESMA said the review is intended to test whether authorized firms can maintain effective operational safeguards in practice rather than relying solely on their MiCA licenses, making it one of the first coordinated supervisory exercises after the transition period expired.