EU Targets 40 Crypto Firms in Regulatory Sweep – Full Audit Expected by 2027

The European Union is sharpening its regulatory claws—40 crypto companies face intense scrutiny under incoming MiCA rules. Brussels isn’t asking nicely anymore.

Behind the velvet glove: A three-year deadline for compliance, with ’voluntary cooperation’ sounding suspiciously like ’or else.’ Expect forensic audits, transaction tracing, and the usual regulatory theater of ’protecting investors’ while stifling innovation.

Bonus jab: Nothing unites bureaucrats faster than the smell of untaxed digital assets—except maybe a fresh batch of EU subsidy applications.

Why is the EU tightening its grip on crypto?

Moving forward, Article 79 of the AMLR sets out the EU’s strict stance on eliminating anonymity in crypto.

The European Crypto Initiative (EUCI), through its AML Handbook, emphasized that these regulations extend beyond crypto platforms. They also apply to traditional bank accounts and digital payment systems.

Vyara Savova, senior policy lead at EUCI, confirmed that the CORE legislative framework is complete. However, the European Banking Authority will determine implementation details through delegated acts.

The newly established AMLA will oversee enforcement. Starting on the 1st July 2027, it will directly supervise up to 40 CASPs operating in at least six EU countries.

To qualify for supervision, CASPs must either manage over 20,000 accounts or process more than €50 million in annual transactions.

This move strengthens the EU’s push for transparency within the broader MiCA regulatory framework.

Other steps taken by the EU to control the crypto ecosystem

This coincided with the European Securities and Markets Authority (ESMA) recently excluding Bitcoin miners and proof-of-stake validators from strict market abuse reporting rules.

Last December, ESMA clarified that miners, validators, builders, and searchers do not fall under the category of Persons Professionally Arranging or Executing Transactions (PPAETs) under MiCA.

Instead, the responsibility to detect and report market abuse lies with CASPs, such as crypto exchanges.

Patrick Hansen, Circle’s EU strategy director, praised the decision, calling it a “flexible” approach that balances regulatory compliance with crypto innovation.

As expected, Hansen summed it best when he said, 

“ESMA also decided not to rigidly define PPAETs in the regulatory technical standards (RTS), keeping room for flexibility as the market evolves.” 

Therefore, it remains to be seen whether the EU’s approach will stifle the crypto industry or serve as a catalyst for its overall growth.