Woofun AI reports that Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), has issued a stark warning regarding systemic compliance strains within the European Union’s virtual asset service providers (VASPs) as the Markets in Crypto-Assets Regulation (MiCA) transitional period concludes. The core concern centers on the potential for mass user migration to overwhelm existing infrastructure, creating significant vulnerabilities in anti-money laundering frameworks across the bloc.

The deeper driver of this instability is the operational pressure exerted by rapid capital movements. During a Wednesday briefing with the European Parliament’s Committee on Economic and Monetary Affairs, Szego highlighted that customers are expected to rush to withdraw funds, placing immense strain on firms winding down their EU operations. Simultaneously, licensed crypto companies face severe onboarding challenges as they attempt to absorb these displaced users, creating a dual-pressure scenario that threatens procedural integrity.

Structurally, the regulatory landscape shifted decisively when MiCA’s 18-month transitional period ended on July 1, mandating that all crypto asset service providers (CASPs) hold valid licenses to continue serving EU customers. The European Securities and Markets Authority clarified that any provider remaining unauthorized by this deadline must take immediate steps to cease EU activities, effectively forcing a binary choice between full compliance or market exit.

Per Woofun AI, AMLA published an advisory note prior to the July 1 deadline to address these specific money laundering risks. The guidance detailed necessary measures for both exiting firms and new entrants to maintain robust anti-money laundering controls during this volatile transition.

Furthermore, Szego confirmed that AMLA will release a comprehensive report before the end of the year, analyzing supervisory practices and expanding blockchain analytics capabilities to enhance oversight of crypto-asset service providers.

This marks a critical step toward harmonizing enforcement standards across the region. The upcoming report will assess how national authorities supervise CASPs and identify discrepancies in practices among member states. AMLA intends to leverage these findings to coordinate follow-up work with national regulators, aiming to establish consistent anti-money laundering oversight throughout the European Union.