AMLA warns MiCA exit may raise crypto AML risks

Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), warned that the end of the EU’s Markets in Crypto-Assets Regulation (MiCA) transition could increase money-laundering risks as customers rush to withdraw funds. She spoke at a Wednesday briefing with the European Parliament’s Committee on Economic and Monetary Affairs.

MiCA’s 18-month transitional period ended on July 1. From that date crypto-asset service providers must hold authorization to serve EU customers. The European Securities and Markets Authority told providers that remain unauthorized to take immediate steps to wind down EU activities.

AMLA warned firms winding down EU operations may face heavy withdrawal flows, while licensed providers could struggle to absorb surges of new users. The authority said controls could weaken during exit procedures, a situation that could create laundering risks if monitoring and checks are not maintained.

Ahead of the deadline AMLA issued an advisory note with measures for firms closing operations and for licensed providers onboarding customers to help preserve anti-money-laundering controls. “Because we know customers will rush to withdraw, this will put additional pressure on these VASPs,” Szego warned, urging firms to keep AML checks efficient and effective during the transition.

AMLA plans to publish a report before the end of the year assessing money-laundering risks in the crypto sector and mapping supervisory practices across member states. The report will review how national authorities oversee crypto-asset service providers, identify differences in supervisory approaches and recommend follow-up where coordination is needed.

Szego also announced AMLA is expanding its blockchain analytics capabilities to improve monitoring of transactions and compliance behaviour by service providers. AMLA reiterated that firms exiting the EU must manage customer withdrawals while maintaining transaction monitoring and customer due diligence, and that licensed firms taking on customers must balance rapid onboarding with required AML checks.