The EU Anti-Money Laundering Authority (AMLA) has warned that the expiration of MiCA’s transitional period on July 1 is placing significant compliance pressure on crypto firms, as a mass migration of customers from unauthorized to licensed providers takes shape. AMLA cautioned that this shift could strain anti-money laundering (AML) controls if not managed carefully.
In a briefing before the European Parliament’s Committee on Economic and Monetary Affairs, AMLA Chair Bruna Szego highlighted that firms winding down EU operations may face a surge in withdrawal requests, while licensed virtual asset service providers (VASPs) are at risk of onboarding large numbers of new users without sufficient AML scrutiny. “Licensed providers should keep anti-money laundering procedures effective throughout the transition,” Szego stated, emphasizing the need for robust controls during the customer exodus.
The warning follows the end of the 18-month transitional period under the Markets in Crypto-Assets (MiCA) regulation, which now requires all crypto-asset service providers (CASPs) to be authorized. Earlier, the European Securities and Markets Authority (ESMA) directed unauthorized firms to immediately start winding down EU operations. AMLA had issued a pre-deadline advisory outlining expectations for both departing firms and those absorbing the migrating users.
Looking ahead, Szego announced that AMLA will publish a comprehensive report before year-end examining money laundering risks in the crypto sector and how national authorities supervise CASPs. The authority is also expanding its blockchain analytics capabilities to strengthen oversight. Additionally, ESMA launched a Common Supervisory Action on July 11 to test operational resilience among MiCA-authorized crypto custodians, focusing on private key management, incident response, and third-party technology dependencies. These efforts signal a new phase of proactive, coordinated EU supervision in the post-MiCA landscape.
