A mass migration of users after the end of the MiCA regulation transition period could create critical strain on crypto services in the European Union. This statement was made by the head of the Anti-Money Laundering Authority (AMLA), Bruna Szego, emphasizing the seriousness of the upcoming changes for the market.
According to Szego, virtual asset service providers (VASPs) leaving the EU risk facing an avalanche-like outflow of client funds. At the same time, licensed companies, on the contrary, expect a sharp influx of new users. Both scenarios significantly increase the burden on customer verification (KYC) procedures and AML compliance, which could lead to service disruptions.
New Rules of the Game: MiCA Takes Full Effect
Let me remind you that the MiCA transition period ended on July 1. Before this date, companies could operate in the EU based on national licenses if they started operations before December 30, 2024. Now, registration under the new unified regulation is mandatory for providing services.
At the end of the transition period, the register of the European Securities and Markets Authority (ESMA) listed 244 licensed crypto service providers in the EU and the European Economic Area (EEA). In the final days before the deadline, companies from Italy, France, Malta, and Spain joined them. On July 6, the fintech project Ripple also received full MiCA authorization.
Earlier, ESMA demanded that companies without the appropriate permission immediately cease operations in the region. Additionally, the regulator launched an inspection program for crypto asset service providers (CASPs) with a particular focus on custodial services.
AMLA Plans: From Recommendations to Unified Supervision
Just before the end of the transition period, AMLA issued an advisory note with recommendations for crypto companies. The document outlines clear measures for both firms leaving the EU market and licensed VASPs taking on new clients.
By the end of the year, the regulator intends to publish a detailed report on money laundering threats in the crypto industry and on control practices for crypto service providers in EU countries. In parallel, the agency is expanding its blockchain analytics capabilities. As Szego emphasized, the results of this study will allow AMLA to coordinate work with national regulators and develop a unified approach to overseeing crypto services in the European Union.
I should add that in July, the European Parliament approved an official position on further regulation of digital assets. It provides for expanded oversight of DeFi, NFTs, staking, and crypto lending.
My comment: The market is entering a phase of intense consolidation. Companies that did not manage or choose to obtain a MiCA license will be forced to either exit or seek partnerships with licensed players. For clients, this means temporary turbulence, but in the long term — higher standards of security and transparency. However, the main risk I see is the concentration of the market in the hands of a few large players, which could reduce competition and the innovative potential of the European crypto sector.