The end of the transitional period for the Markets in Crypto-Assets (MiCA) regulation in the European Union presents new challenges for the crypto industry. The head of the Anti-Money Laundering Authority (AMLA), Bruna Szego, warned that a mass exodus of service providers and a simultaneous influx of new clients to licensed players could trigger serious operational disruptions. This concerns both companies leaving the EU market and those staying — the burden on Know Your Customer (KYC) procedures and compliance with Anti-Money Laundering (AML) requirements will increase manifold.
Key consequences of the transitional period
From July 1, 2025, all crypto firms in the European Union must have full MiCA registration, rather than national licenses as was previously the case. At the time of the deadline, the ESMA (European Securities and Markets Authority) register listed 244 licensed crypto service providers. In recent days, companies from Italy, France, Malta, and Spain have joined them, and on July 6, fintech giant Ripple also received full authorization. However, those who did not manage or did not wish to undergo the procedure must immediately cease operations in the region — this creates the risk of a mass withdrawal of funds by clients.
Actions by AMLA and ESMA
On the eve of the end of the transitional period, AMLA issued an advisory note with recommendations for crypto companies on how to act when leaving the market or facing a sharp increase in the client base. By the end of the year, the authority plans to publish a full report on money laundering threats in the crypto industry, as well as expand blockchain analytics capabilities. In parallel, ESMA launched a program to check the operational resilience of custodial services (CASP), indicating a priority on protecting user assets.
Looking ahead
Szego emphasized that the results of these studies will allow AMLA to coordinate work with national regulators and develop a unified approach to overseeing crypto services across the European Union. Meanwhile, in July, the European Parliament approved an official position on further regulation of digital assets, covering DeFi, NFTs, staking, and crypto lending.
Expert opinion: The MiCA transitional period is not just a bureaucratic milestone, but a stress test for the entire EU infrastructure. The mass migration of users could reveal weaknesses even among large licensed platforms, especially in scaling AML procedures. Investors should closely monitor how companies handle this burden, as operational disruptions directly affect the safety of funds.