EBA Warns Crypto Firms May Exploit MiCA Transition Period

The European Banking Authority has raised alarms about cryptocurrency firms circumventing incoming EU regulations. While no specific companies were named, the EBA highlighted systemic risks from entities exploiting regulatory gaps during the Markets in Crypto-Assets framework's implementation phase.

Forum shopping appears prevalent, with firms targeting jurisdictions perceived as having lax oversight. One unnamed operator reportedly applied across multiple states, withdrawing from rigorous reviews while maintaining operations in more permissive markets. "Entities with weak anti-money laundering controls are already operating in the EU by selecting favorable jurisdictions," the EBA noted.

The transition period until July 2026 creates a vulnerability window. Unlicensed firms may continue operating while regulators scramble to enforce compliance across divergent national standards. The passporting system, designed for unified market access, risks becoming a backdoor for substandard operators.