AML Pressure Rises for VASPs After MiCA Transition

The conclusion of MiCA’s 18‑month transition period has unleashed a fresh compliance storm for crypto asset service providers (VASPs) operating across the EU.

The 18‑Month MiCA Transition and Its Fallout

EU‑licensed VASPs must cease serving EU customers without a licence as of July 1. Firms that remain unlicensed are required to wind down EU activities "immediately."

AMLA’s Warning and Recommendations

Bruna Szego, chair of AMLA, told the European Parliament’s Committee on Economic and Monetary Affairs that a rush of customer withdrawals will drive up compliance costs for VASPs. AMLA advises the following actions:

■Anticipate customer outflows and bolster liquidity management.

■Maintain AML controls at current levels throughout the transition.

■Automate reporting to increase audit transparency.

■Coordinate with national supervisors to build a unified oversight framework.

New Challenges for Licensed CASPs

Licensed crypto firms face heightened risks while onboarding new user flows:

■Scaling KYC/AML processes.

■Expanding blockchain analytics infrastructure.

■Balancing customer satisfaction against compliance expenditures.

supervisory Diversity Across EU Member States

AMLA’s forthcoming report highlights the following regulatory variations:

■Germany: Strict reporting and frequent audit cycles.

■France: Risk‑weighted supervision with flexible licence renewals.

■Poland: Minimal oversight, rapid licensing.

■Italy: Mid‑level supervision, focused AML training programs.

The report AMLA plans to release by year‑end will serve as a critical roadmap for establishing consistent AML oversight across the EU. Beyond mere regulatory compliance, VASPs will need to manage liquidity risk while leveraging layer‑2 solutions and automated AML controls. Investments in data analytics and liquidity pool integration will ultimately determine the sector’s long‑term resilience.