EU AML authority demands stronger CTF protections from crypto firms
European cypto firms must implement robust protections against financial crime, the EU’s new Anti-Money Laundering Authority warned, as the regulator officially launched its supervisory powers.
AMLA said it expects Crypto-Asset Service Providers (‘CASPS’) to have ‘strong protections against money laundering and terrorist financing’ in place as new regulatory frameworks take effect.
‘We welcome the development of new technologies and business models. However, it is essential that in the light of a new regulatory framework and major transformation of the crypto-assets sector, Europe is adequately protected from the risks of money laundering and terrorist financing,’ said AMLA Chair Bruna Szego.
AMLA officially began exercising its powers on 1 July, with crypto-asset service providers featuring prominently in the authority’s 2025 work programme as a priority supervisory area.
The regulator noted that crypto firms ‘are exposed to significant money laundering and terrorist financing risks due to their technological features, cross-border operations, and anonymity-enhancing capabilities’.
Under the Markets in Crypto-Assets Regulation now in effect, crypto service providers must obtain MiCA licences to operate in the EU, with several authorisations already issued to major crypto companies.
AMLA expects ‘the number of licenced CASPs will continue to increase considerably’ and emphasised the need for consistent anti-money laundering standards across the bloc’s 27 Member States.
The authority warned of risks from ‘diverging application of AML/CFT requirements and inconsistent controls’ as national authorities handle initial licensing and supervision of crypto firms.
AMLA said it expects licensing authorities to ensure crypto providers have effective AML/CFT systems in place from day one of their authorisation and will work with national supervisors to promote high standards.
The regulator’s financial intelligence division will include crypto-related analysis within its initial focus areas, ‘targeting cross-border typologies and emerging risks in this fast-evolving domain’.
AMLA’s launch represents a significant step in European financial crime enforcement, with the Frankfurt-based authority coordinating anti-money laundering efforts across EU member states.
The emphasis on crypto supervision reflects growing regulatory attention to digital assets as authorities seek to prevent their use in illicit financing while supporting legitimate innovation.
