The end of the transitional period for the MiCA (Markets in Crypto-Assets) regulation creates significant operational risks for the crypto industry in the European Union. Bruna Szego, head of the Anti-Money Laundering Authority (AMLA), warned that a mass migration of users could overload both exiting and remaining Virtual Asset Service Providers (VASPs) in the market.
According to Szego, companies leaving the EU due to non-compliance with new requirements risk facing an avalanche of client fund withdrawals. Conversely, licensed operators expect a sharp influx of new users. In both scenarios, the burden on KYC (Know Your Customer) procedures and AML (Anti-Money Laundering) compliance increases manifold, creating vulnerabilities for malicious actors.
New Rules of the Game in the EU
The MiCA transitional period expired on July 1, 2025. Before this date, firms that started operations before December 30, 2024, could operate under national licenses. Now, full registration under the new regulation is mandatory for providing crypto services in the region. At the end of the transitional period, the register of the European Securities and Markets Authority (ESMA) listed 244 licensed 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 the list, and on July 6, the fintech project Ripple received full MiCA authorization.
ESMA has already demanded that unlicensed firms immediately cease operations in the region and launched an inspection program for Crypto Asset Service Providers (CASPs), with a particular focus on custodial services. This is a logical step: asset custody remains the most vulnerable link from a compliance perspective.
AMLA Plans and Further Regulation
Just before the end of the transitional period, AMLA issued an advisory note with recommendations for crypto companies. The document contains practical measures for both firms exiting the market and licensed VASPs taking on new clients. By the end of the year, the regulator plans to publish a report on money laundering threats in the crypto industry and oversight practices for providers in EU countries. In parallel, AMLA is expanding its blockchain analytics capabilities.
Szego emphasized that the study results will help coordinate with national regulators and develop a unified approach to overseeing crypto services. Notably, in July, the European Parliament already approved an official position on further regulation of digital assets, which includes expanding oversight to DeFi, NFTs, staking, and crypto lending.
My expert commentary: The MiCA transitional period is just the first stage of a large-scale restructuring of the European crypto market. The real strain on infrastructure will begin now, as tens of thousands of users are forced to migrate between platforms. Companies that cannot quickly adapt their AML procedures face not only regulatory sanctions but also reputational damage. In the coming months, we will see market consolidation: only those VASPs that implement advanced blockchain analytics and automated client verification systems will survive.