AMLA flags compliance risks for EU CASPs after July 1 deadline

Mass user migration after the end of MiCA's transitional period could strain anti-money laundering compliance at virtual asset service providers across the European Union, according to AMLA Chair Bruna Szego.

"Because we know customers will rush to withdraw, this will put additional pressure on these VASPs," Szego said during a Wednesday briefing with the European Parliament's Committee on Economic and Monetary Affairs.

Szego said firms winding down their EU operations face pressure as customers rush to withdraw funds, while licensed crypto asset service providers could encounter onboarding challenges as they absorb new users. MiCA's 18-month transitional period ended July 1, requiring all CASPs to hold a license to continue serving EU customers. The European Securities and Markets Authority said unauthorized providers must take immediate steps to wind down their EU activities.

AMLA will publish a report before the end of 2026 on money laundering risks in the crypto sector and supervisory practices across the bloc, Szego said. The authority is also expanding its blockchain analytics capabilities to strengthen oversight of crypto-asset service providers, she added.

Ahead of the July 1 deadline, AMLA published an advisory note warning crypto firms about money laundering risks arising from the end of the transitional period. The guidance outlined measures for firms winding down EU operations and licensed providers onboarding new customers to maintain anti-money laundering controls.

The forthcoming report will assess how national authorities supervise crypto-asset service providers and identify differences in supervisory practices across member states. Szego said AMLA intends to use the findings to coordinate follow-up work with national regulators as it works toward more consistent anti-money laundering oversight across the bloc.

The compliance strain comes as the EU's regulatory framework for digital assets enters a new phase. Licensed CASPs must now navigate both MiCA's market rules and AMLA's anti-money laundering requirements, creating a dual regulatory burden that could raise operating costs for exchanges serving European customers. Firms that failed to secure licenses before the deadline face an orderly wind-down process under ESMA supervision, with customer withdrawals adding operational pressure.

This article is for informational purposes only and does not constitute investment advice.