Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), cautioned that the conclusion of the Markets in Crypto-Assets (MiCA) transitional period has heightened compliance pressures for crypto firms. Szego highlighted concerns that licensed virtual asset service providers (VASPs) may struggle to accommodate a surge in new customers migrating from unlicensed platforms.
The end of the 18-month MiCA transitional period on July 1 mandated that crypto-asset service providers (CASPs) obtain authorization to continue operating within the European Union. Szego noted that firms winding down operations should expect an influx of customer withdrawals as users transfer their assets to licensed providers. She emphasized the necessity for these providers to uphold stringent anti-money laundering protocols during the onboarding of new clientele.
AMLA plans to release a report later this year that will get into money laundering risks prevalent in the crypto sector, as well as supervisory practices employed by national authorities. Szego mentioned that the report will analyze how different regulators supervise CASPs across member states, identifying areas that might necessitate coordinated follow-up actions between AMLA and national authorities.
Earlier, the European Securities and Markets Authority (ESMA) issued guidance instructing unauthorized firms to wind down their EU operations promptly, resulting in a significant migration of customers to licensed providers. This shift could further strain compliance for firms that must balance increased user onboarding while ensuring adherence to anti-money laundering standards.
This material is informational and not financial advice.
