EU Crypto Sector Prepares for Post-MiCA Compliance Strain

The European Union's crypto sector is bracing for a potential strain on compliance as virtual asset service providers (VASPs) face an influx of users after the end of the Markets in Crypto-Assets Regulation (MiCA) transitional period. MiCA's 18-month transitional period ended on July 1, requiring VASPs to hold a license to continue serving EU customers.

According to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), firms winding down their EU operations could come under pressure as customers rush to withdraw, while licensed crypto companies could face onboarding challenges as they absorb new users. She urged service providers to maintain efficient compliance procedures throughout the transition.

AMLA has published an advisory note warning crypto firms about money laundering risks arising from the end of the transitional period. The guidance outlined measures for firms winding down their EU operations and licensed providers onboarding new customers to maintain anti-money laundering controls during the transition.