Supervisors Should Learn from Crypto Cases to Strengthen Financial Crime Prevention, Says EBA

The European Banking Authority (EBA) has published a comprehensive report calling on supervisors across the EU to draw lessons from recent cases of money laundering and terrorist financing (ML/TF) involving crypto-asset firms. The report outlines key findings on how authorities can enhance their supervisory approaches to better identify, manage, and mitigate financial crime risks in the rapidly evolving crypto sector.

Since 2018, when crypto-asset businesses first came within the EU’s regulatory perimeter, the EBA has played a pivotal role in strengthening the AML/CFT framework for digital assets. Through close collaboration with national competent authorities, the European Supervisory Authorities, and international counterparts, the EBA has gained valuable insights into the operations and risk exposures of crypto-asset service providers (CASPs) and issuers, both before and after the implementation of the Markets in Crypto-Assets Regulation (MiCA).

The report identifies significant vulnerabilities within the sector, including instances where CASPs and issuers have attempted to bypass national AML/CFT supervision. It highlights how MiCA and the revised AML/CFT regime introduce new safeguards to close these gaps and ensure consistent oversight. The findings provide targeted guidance to supervisors on authorisation and ongoing supervision, helping them develop more proactive and risk-based approaches to crypto-asset regulation.

By consolidating lessons learnt from supervisory actions across member states, the EBA aims to support the effective rollout of MiCA and the broader EU AML/CFT framework. The report promotes a forward-looking supervisory culture—one that anticipates emerging threats, enhances compliance effectiveness, and reinforces the integrity and stability of EU financial markets.

Under its Founding Regulation, the EBA has a mandate to ensure the integrity of financial markets and prevent their misuse for money laundering or terrorist financing. Through its coordinating role under Articles 9a and 31 of the Regulation, the EBA continues to lead efforts to promote transparency, consistency, and technological innovation across the European financial system.

Read the press release here.