Crypto Firms Face Increased AML Risks After MiCA Transitional Period Ends

Crypto firms in the European Union are facing increased Anti-Money Laundering (AML) risks as customers rush to withdraw their assets after the Markets in Crypto-Assets Regulation (MiCA) transitional period ended on July 1.

According to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), this mass user migration will put additional pressure on virtual asset service providers (VASPs) in the EU.

'Because we know customers will rush to withdraw, this will put additional pressure on these VASPs,' Szego said during a briefing with the European Parliament's Committee on Economic and Monetary Affairs.

AMLA has published an advisory note warning crypto firms about money laundering risks arising from the end of the transitional period. The authority is also expanding its blockchain analytics capabilities to strengthen oversight of crypto-asset service providers.