It is known that customers will flock to withdraw money, which will put additional pressure on virtual asset service providers, Szego said in a presentation to the European Parliament's Economic and Monetary Affairs Committee on Wednesday. According to the president, companies that terminate their European Union operations could come under pressure as customers quickly withdraw money. Licensed crypto companies, on the other hand, may have difficulty accepting customers while recruiting new users. Szego urged service providers to maintain efficient compliance procedures throughout the transition.
MiCA's 18-month transition period ended on July 1, requiring crypto asset service providers to be licensed to continue serving European Union customers. The European Securities and Markets Authority (ESMA) stated that service providers that remain unauthorized as of the deadline should take urgent steps to terminate their European Union activities.
Before the July 1 deadline, the Authority had published an information note warning crypto companies about the money laundering risks that would arise from the end of the transition period. According to the note, companies that cease operations and licensed providers that accept new customers must take certain measures to maintain anti-money laundering controls during the transition.
Szego stated that AMLA will publish a report on money laundering risks in the crypto sector and supervisory practices across the association before the end of the year. The chairman said that the authority has also expanded its blockchain analysis capacity to strengthen supervision of crypto asset service providers. The report will also assess how national authorities supervise these providers and highlight the differences in supervision between member states. Szego added that the agency aims to use the findings in follow-up activities with national regulators, where necessary, for more consistent oversight across the union.