The Authority for Anti-Money Laundering and Countering the Financing of Terrorism has responded to the European Commission’s review of the Markets in Crypto-Assets Regulation, recommending targeted changes to address money laundering and terrorist financing risks and improve supervisory consistency across the European Union. The proposals follow its earlier advisory on risks linked to the end of the MiCA transitional period on July 1, 2026, and focus on activities and entities that may remain outside the current regulatory perimeter. The authority recommends dedicated requirements for crypto staking, lending and borrowing rather than relying on custody rules, as well as a legal definition of decentralized finance arrangements and common criteria for identifying effective control. It also calls for consistent treatment of unauthorized stablecoins, a review of whether certain asset-referenced token issuers should become obliged entities under the anti-money laundering framework, and more detailed passporting information to distinguish establishment-based services from cross-border services. Additional proposals address third-country multi-issuance stablecoins, the identification of wallet addresses and closer alignment of MiCA authorization and ownership assessment rules with other financial legislation.

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