EU AMLA Says Full MiCA Rollout Could Raise Crypto Money-Laundering Risks

The European Union’s full implementation of its Markets in Crypto-Assets regulation, or MiCA, could heighten anti-money laundering risks in the digital-asset industry, the bloc’s anti-money laundering authority said.

Bruna Szego, chair of the Anti-Money Laundering Authority, told the European Parliament’s Committee on Economic and Monetary Affairs that virtual-asset service providers may come under significant strain as users withdraw assets in large numbers or shift to licensed operators, Cointelegraph reported on July 15.

An influx of new customers could also increase the burden on digital-asset firms’ know-your-customer and anti-money laundering procedures. She said AML safeguards must remain in place.

The EU ended its 18-month MiCA licensing transition period on July 1. Crypto-asset service providers seeking to continue operating in the bloc must now obtain a MiCA license, while firms that fail to secure authorization must leave the EU market.

Szego said AMLA plans to publish a report by the end of this year analyzing money-laundering risks in the digital-asset industry and supervisory frameworks across member states.

The authority also plans to expand its blockchain analytics capabilities to strengthen oversight of virtual-asset service providers.

It will review differences in supervisory approaches among member states and, where needed, pursue follow-up measures with national regulators to make anti-money laundering supervision more consistent across the EU, she added.