MiCA deadline strains EU crypto compliance

MiCA's transition end triggers mass user migration in the EU, straining crypto firms' compliance. AMLA urges strong AML controls as unlicensed providers exit and licensed firms onboard new users.

The conclusion of the Markets in Crypto-Assets Regulation (MiCA) 18-month transitional period on July 1 has created significant compliance challenges for virtual asset service providers (VASPs) in the European Union. Bruna Szego of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) warned that the mass migration of users—from unlicensed to licensed firms—could strain compliance frameworks and operational capacity. The European Securities and Markets Authority (ESMA) has instructed crypto service providers without the necessary licenses to immediately wind down their EU operations. AMLA has urged all providers to maintain robust anti-money laundering (AML) controls during this transition, emphasizing the importance of effective compliance as firms exit or onboard new users. AMLA also plans to publish a crypto money laundering risk report before year-end and is expanding its blockchain analytics capabilities to address increased risks during this period.