EBA warns of AML risks from crypto firms in MiCA transition
The European Banking Authority (EBA) warned on October 9 that crypto-asset service providers operating under transitional arrangements pose money-laundering and terrorist-financing risks as the EU phases in its Markets in Crypto-Assets regime.
The authority published guidance for national supervisors highlighting gaps created by firms that continue under old national rules while waiting for MiCA authorization. These providers can operate until July 1, 2026, or until their license application is approved or denied, whichever comes first.
Article 143 of MiCA grants these "grandfathering" rights to providers that were already active under national law. The EBA identified cases where firms rejected for MiCA licenses continue operating during appeals, allowing them to evade oversight and gain advantages over regulated competitors. The authority said some providers exploit uneven national supervision to engage in forum shopping before EU-level rules fully apply.
The report draws on recent supervisory cases across the EU and aims to strengthen authorization and ongoing oversight practices. The EBA said the guidance "summarises lessons learnt from actions taken by competent authorities and the EBA in identifying and managing ML/TF risks associated with crypto-asset businesses."
Under MiCA, the European Securities and Markets Authority leads supervision of crypto-asset service providers, while the EBA oversees issuers of asset-referenced tokens and e-money tokens. The EBA also coordinates anti-money laundering and counter-terrorist financing efforts until these powers transfer to the new AML Authority at the end of 2025.
MiCA's rules for asset-referenced and e-money tokens started applying in June 2024, with broader provisions taking effect in December 2024. Before MiCA, fragmented national regimes left gaps that some firms exploited, making cross-border supervision difficult.
The authority plans to use its EuReCA database and the recent EU anti-money laundering package to support consistent enforcement across member states throughout the transitional period. The package includes the Anti-Money Laundering Regulation, the sixth Anti-Money Laundering Directive, and the establishment of the Anti-Money Laundering Authority.
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