Crypto Under the Microscope by EU Watchdog

As cryptocurrency adoption accelerates globally, so does regulatory scrutiny, especially in Europe. The newly formed Anti-Money Laundering Authority (AMLA), a pan-European financial watchdog, has declared crypto the top money-laundering threat facing the EU today.

According to AMLA’s first official risk assessment report, approximately $51 billion was laundered through crypto channels in 2024 alone. These funds are believed to have flowed through decentralized exchanges, anonymous wallets, and poorly regulated platforms, making digital assets a prime target for criminal operations.

To address this growing concern, AMLA has announced plans to license and supervise approximately 40 of the largest crypto firms operating in Europe by 2028. The goal is to create a harmonized anti-money laundering framework that spans all EU member states, replacing the current patchwork of national-level regulations.

This move aligns with the EU’s broader Markets in Crypto-Assets (MiCA) regulation rollout, which sets more explicit rules for stablecoins, crypto exchanges, and wallet providers. By bringing crypto companies under stricter oversight, regulators aim to mitigate the risk of illicit finance while promoting safer innovation in the sector.

However, the crypto community remains divided. While some firms welcome the clarity and legitimacy that formal licensing offers, others worry about potential overregulation that could stifle growth and innovation.

For AMLA, the message is clear: as the crypto economy expands, so must the guardrails. With billions at stake and the digital asset market maturing rapidly, the EU is setting the tone for a more controlled and transparent crypto future.