EU Crypto Migration Triggers Compliance Alarm

Addressing the European Parliament’s Committee on Economic and Monetary Affairs, Szego emphasized that firms winding down operations face a surge in withdrawal requests, while licensed virtual asset service providers struggle to onboard new users without compromising their security protocols. The authority’s primary concern is that rapid account transfers could create gaps in monitoring, allowing illicit flows to bypass oversight during the transition.

To mitigate these risks, AMLA is preparing a comprehensive report on sector-wide money laundering threats, expected by year-end. This document will evaluate how national regulators supervise crypto-asset service providers and highlight inconsistencies that require immediate, coordinated action. Beyond policy, the regulator is aggressively expanding its internal blockchain analytics capabilities to track transactions across the bloc more effectively.

These oversight efforts complement the European Securities and Markets Authority’s recent move to launch a Common Supervisory Action. This program audits authorized custodians on operational resilience, specifically targeting their management of private keys, incident response protocols, and dependence on third-party technology. The goal is to ensure that firms do not view a MiCA license as a static achievement, but as a commitment to maintaining rigorous safeguards in a volatile market environment.