The end of the transitional period for the MiCA (Markets in Crypto-Assets) regulation has created a new wave of challenges for the EU's crypto industry. According to Bruna Szego, head of the Anti-Money Laundering Authority (AMLA), a mass exodus of Virtual Asset Service Providers (VASPs) from the region, coupled with a simultaneous influx of new clients to licensed players, could lead to a critical overload of compliance and user verification systems.
From July 1, 2025, all crypto firms wishing to operate in the EU must obtain full MiCA authorization. Previously, they could operate under national licenses if they started operations before December 30, 2024. Now, according to the European Securities and Markets Authority (ESMA), the register lists 244 licensed providers. In the final days before the deadline, companies from Italy, France, Malta, and Spain joined them, and on July 6, fintech project Ripple also received full authorization.
Szego emphasizes: companies leaving the EU market risk facing a mass withdrawal of client funds, which could trigger operational disruptions. At the same time, licensed VASPs taking on migrating users must be prepared for a sharp increase in the burden on AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures. This is particularly critical given ESMA's requirements for unauthorized firms to immediately cease operations and the launched inspection program for custodial services.
AMLA's Plan and New Regulatory Horizons
On the eve of the transitional period's end, AMLA issued an advisory note with recommendations for both categories of companies. By the end of the year, the authority plans to publish a report on money laundering threats in the crypto industry, as well as expand blockchain analytics capabilities. According to Szego, this data will form the basis for a unified approach to overseeing crypto services in the EU, coordinating the actions of national regulators.
Recall that in July, the European Parliament approved a position on further regulation of digital assets, which includes expanding oversight of DeFi, NFTs, staking, and crypto lending. This is a logical step: without strict control over new market segments, user migration could only exacerbate risks rather than solve them. In my professional opinion, the industry is on the verge of serious consolidation, where only those ready for total compliance and scaling operational capacities will survive.