EU’s New AMLA Watchdog Warns of Money-Laundering Risk in Crypto Sector

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Europe’s newly operational Anti‑Money Laundering Authority (AMLA) has warned regulators and virtual asset service platforms (VASPs) about stricter compliance requirements to come, while designating cryptocurrency services the “top money‑laundering threat” in the EU. 

In a release, AMLA Chair Bruna Szego said,

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 stemming from this sector.

Szego added in an interview with the Financial Times that EU authorities must now scrutinize beneficial ownership of crypto firms to ensure owners are not involved in money laundering or terrorism financing.

New AML regulations also ban the use of anonymous wallets and privacy coins, mandating that VASPs grant authorities direct access to account data by July 2027. 

AMLA, based in Frankfurt and officially operational since July 1, 2025, is preparing for when it plans to directly supervise around 40 major high‑risk financial institutions in 2028, including crypto firms. 

AMLA’s 2025 strategy names crypto-related financial crime as an “immediate priority” for the year, citing inconsistent supervision of VASPs across member states as a key vulnerability. To address this, the agency will work closely with national regulators and begin coordinating with financial intelligence units to track cross-border crypto risks.