EU regulator flags AML risks for crypto firms during MiCA transition

The warning says departing and licensed CASPs may face onboarding surges and withdrawal pressure as the EU's new crypto regime reshapes the market.

Summary

EU regulators have highlighted anti-money laundering risks for crypto firms as the market shifts into the MiCA framework. The warning focuses on CASPs (crypto-asset service providers) that are either leaving the market or operating with licenses, saying both groups should keep effective AML (anti-money laundering) procedures in place while handling possible spikes in customer onboarding and fund withdrawals during the transition.

Terms & Concepts
  • MiCA: EU crypto regulatory framework
  • CASPs: Crypto-asset service providers under EU rules
  • AML: Anti-money laundering compliance controls