Crypto Tops EU Watchdog’s Money Laundering Concerns
The EU’s new anti-money laundering chief warns that crypto assets pose the biggest threat to financial integrity, triggering stricter oversight plans.
AMLA Chair Flags Crypto as Priority, Eyes Direct Oversight of Top Providers by 2028
The European Union’s new Anti-Money Laundering Authority (AMLA) has issued a stark warning to Europe’s growing crypto industry. Bruna Szego, the agency’s chair, declared cryptocurrencies to be the “biggest challenge” in combating illicit money flows.
Speaking to the Financial Times, Szego said the crypto market is “substantially exposed to money laundering and terrorist financing risks.” Given the EU’s recently launched pan-European crypto licensing framework under MiCA, she emphasized the urgent need for cohesive oversight.
“Our market is very fragmented,” she explained, “and many crypto asset service providers are trying to obtain licenses here.”
Fragmented Oversight Sparks Concern
Unlike traditional financial institutions, crypto assets carry a unique combination of anonymity, cross-border transferability, and rapid settlement — all of which complicate regulatory scrutiny. AMLA has sounded the alarm over “inconsistent management” by individual EU national authorities, leading to regulatory arbitrage and compliance gaps.
On Tuesday, AMLA released a formal statement highlighting the risks of this fragmented regime and pledged to unify standards across the bloc. The agency has committed to ensuring “only compliant crypto companies with robust systems” will receive licensing approvals from national regulators.
Who Owns the Platforms?
Another critical challenge is identifying the beneficial owners of crypto service providers. Szego warned:
“We need to make sure the owner is not involved in money laundering or terrorist financing.”
Her remarks suggest that shell ownership structures, anonymity-enhancing practices, and poorly regulated exchanges will no longer find refuge within the EU.
Binance and the Road Ahead
The crypto sector’s risk profile isn’t just theoretical. Earlier this year, French prosecutors launched a probe into Binance, the world’s largest crypto exchange, over alleged money laundering breaches. While Binance denied wrongdoing, the case has raised alarms in European compliance circles.
This follows the 2023 resignation and sentencing of Binance co-founder Changpeng Zhao, who was fined $4.3 billion by U.S. authorities and served time for violations tied to money laundering and sanctions evasion.
AMLA’s Supervision Plans
Szego confirmed that by 2028, AMLA will directly supervise about 40 major financial institutions across Europe — including several crypto asset service providers likely to be among the first.
Currently, the Frankfurt-based agency has just 30 staff but is aggressively hiring with a target of 240 employees by the time direct supervision begins. Szego noted that crypto oversight will feature prominently in early supervision plans.
“Crypto will not get a pass,” she asserted. “We are looking for firms that hire people who understand anti-money laundering.”
Global Regulatory Landscape
Szego’s warnings echo concerns raised by the Financial Action Task Force (FATF), which last month reported that 75% of global jurisdictions remain non-compliant with crypto AML standards. FATF said governments worldwide continue to struggle in regulating digital assets effectively.
Interestingly, the EU’s caution stands in contrast to the U.S. approach, where lawmakers have advanced legislation that could ease the burden on some crypto firms. That said, the American stance may evolve depending on the political landscape.
Final Thoughts
As the EU’s AMLA ramps up its authority, crypto firms should prepare for an era of intense scrutiny and tighter compliance. What was once a loosely regulated space is now firmly on the radar of European regulators.
For crypto’s future in Europe, transparency is no longer optional—it’s the ticket to staying in business.
