The European Banking Authority (EBA) has warned that crypto corporations might exploit regulatory gaps through the Markets in Crypto-Belongings (MiCA) regulation’s transitional section, posing a “important menace” to the EU’s monetary system.
In its current supervisory report, the EBA stated sure crypto service suppliers licensed earlier than MiCA’s full implementation in December 2025 may have interaction in “jurisdiction buying.”
This includes registering in EU member states with weaker oversight and utilizing passporting rights to function throughout the bloc.
The European Banking Authority (EBA) has issued a warning that through the MiCA transitional interval, some crypto service suppliers authorized earlier than the regulation takes full impact might exploit regulatory loopholes or have interaction in “jurisdiction buying.” The EBA famous that such corporations…
— Wu Blockchain (@WuBlockchain) October 12, 2025
The regulation got here totally into impact in late 2024, giving the 27-country financial bloc a unified algorithm governing crypto-asset suppliers for the primary time.
EBA Flags Weak Supervision Dangers Throughout MiCA Transition Interval
In accordance with the EBA, such actions may permit corporations to evade stricter supervision, resulting in opaque governance, insufficient danger administration, and potential misuse of buyer funds.
The EBA cautioned that this habits might lead to “uneven regulatory requirements” and create systemic vulnerabilities.
It urged nationwide authorities to use constant supervision and be certain that corporations licensed through the transitional interval meet equal prudential and governance necessities to those who will apply as soon as MiCA is totally enforced.
The report emphasised the significance of cooperation between EU monetary regulators, warning that insufficient coordination may facilitate the exploitation of inconsistencies between jurisdictions by high-risk entities.
The EBA known as on member states to share details about license approvals and revocations to assist stop regulatory arbitrage.
The authority additionally famous that cash laundering and terrorist financing (ML/TF) dangers stay excessive within the crypto sector.
Moreover, it emphasised that insufficient due diligence and inadequate oversight of cross-border actions may permit illicit flows to go undetected, thereby undermining MiCA’s goal of building a clear and safe digital asset market.
Underneath MiCA, crypto corporations should get hold of authorization and adjust to strict operational, reserve, and disclosure necessities.
Nevertheless, corporations registered earlier than June 2024 beneath nationwide regimes might proceed working till the top of 2025 with out assembly the brand new EU-wide requirements, a interval the EBA says may very well be “exploited by opportunistic actors.”
The EBA urged regulators to accentuate their supervision throughout this window, recommending enhanced scrutiny of governance constructions, capital adequacy, and transaction monitoring techniques.
Moreover, it inspired corporations to start aligning with MiCA’s danger administration and client safety necessities forward of time to keep away from disruptions as soon as the transition interval ends.
The warning comes because the EU prepares for full MiCA enforcement, which seeks to harmonize digital asset regulation throughout all 27 member states and set up clear guidelines for stablecoins, crypto custody, and repair suppliers.
EBA Advances MiCA Implementation With Draft Requirements for Financial institution Crypto Publicity
The EBA continues to play a central position in shaping Europe’s crypto regulation following the implementation of the MiCA.
In January, the European Securities and Markets Authority (ESMA) directed crypto-asset service suppliers to delist stablecoins that don’t meet MiCA’s necessities, reinforcing earlier warnings from the EBA.
MiCA compliance required: Crypto-asset service suppliers should delist non-compliant stablecoins.#MiCA #ESMA $USDT #Stablecoinhttps://t.co/LNE1u6WlSq
— Cryptonews.com (@cryptonews) January 20, 2025
The regulator had already urged corporations to evaluate their compliance standing and cease providing non-conforming tokens, indicating a coordinated effort amongst EU businesses to tighten oversight.
To assist this framework, the EBA launched draft Regulatory Technical Requirements in August, outlining how banks and establishments should handle crypto exposures beneath the Capital Necessities Regulation.
The proposed guidelines set up capital therapy strategies for varied classes of crypto property, starting from unbacked tokens like Bitcoin to asset-referenced and e-money tokens, and align intently with the Basel Committee pointers.
The EBA additionally eliminated its earlier “prudent valuation” requirement, simplifying fair-value assessments whereas introducing new aggregation strategies for lengthy and brief positions.
These measures search to strike a steadiness between innovation and monetary stability as European establishments develop into digital property. Transitional guidelines will permit banks to keep up restricted publicity whereas the EU develops a everlasting framework.
Over 50 corporations have already been licensed beneath MiCA. Some say it’s a breakthrough, others worry it may handcuff Europe’s crypto future. This op-ed breaks down what’s working and what’s not.#MiCA #CryptoRegulationhttps://t.co/OsUt0mKiXl
— Cryptonews.com (@cryptonews) September 17, 2025
By September, over 50 corporations, together with Coinbase, Kraken, and OKX, had secured MiCA licenses, getting access to all 27 EU markets beneath a unified rulebook.
But, compliance has confirmed to be demanding, with prolonged software processes and phased rollouts creating operational uncertainty.
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