AMLA chair warns of AML risks during post-MiCA crypto migration

Szego stated during a briefing with the European Parliament’s Committee on Economic and Monetary Affairs that the expected rush of customers withdrawing assets or migrating to licensed platforms following the end of MiCA's 18-month transitional period on July 1 could strain compliance procedures. She noted that firms ceasing EU operations might face pressure from customers seeking to withdraw funds, while newly licensed providers could encounter onboarding challenges as they absorb these users.

Crypto asset service providers (CASPs) that did not secure a license by the July 1 deadline must now cease their EU activities, according to the European Securities and Markets Authority. AMLA had previously issued an advisory note highlighting money laundering risks associated with the end of the transitional period, providing guidance for both firms winding down operations and licensed providers onboarding new clients.

Looking ahead, Szego announced that AMLA plans to release a report by the end of the year detailing money laundering risks within the crypto sector and assessing supervisory practices across EU member states. The authority is also augmenting its blockchain analytics capabilities to enhance its oversight of crypto-asset service providers. This report aims to identify inconsistencies in national supervision and facilitate coordinated efforts for more uniform AML oversight throughout the bloc.