Crypto Firms Face AML Risks During Post-MiCA Migration

In a recent briefing with the European Parliament's Committee on Economic and Monetary Affairs, Bruna Szego, chair of AMLA, highlighted potential anti-money laundering (AML) risks for crypto firms transitioning under the Markets in Crypto-Assets Regulation (MiCA).

As MiCA’s 18-month transitional period concluded on July 1st, crypto asset service providers (CASPs) are now required to hold licenses if they wish to continue serving EU customers. This deadline has prompted a rush by users to withdraw their funds from non-compliant platforms.

Szego emphasized that the mass user migration could strain compliance procedures at virtual asset service providers (VASPs), as some firms may face pressure due to customer rushes, while others might struggle with onboarding new licensed crypto company customers. She urged all VASPs to maintain efficient AML controls throughout this transition period.

To mitigate these risks, AMLA had previously published an advisory note warning crypto firms about the potential money laundering dangers associated with the end of the transitional period and provided guidance for both wind-down operations and onboarding new users.

Ahead of MiCA’s implementation, AMLA plans to release a comprehensive report by year-end that assesses money laundering risks in the crypto sector. The report will also examine supervisory practices across member states and identify inconsistencies among national regulators. Szego stated that these findings aim to foster more uniform anti-money laundering oversight within the European Union.

Traders should monitor how AMLA’s expanded blockchain analytics capabilities impact compliance procedures for VASPs, as well as any regulatory actions taken by member states in response to this report.

---

Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.