AMLA responds to EC consultation on MiCAR review

The EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has published its response to the European Commission’s (EC) consultation on the review of the Markets in Crypto-Assets Regulation (MiCAR). The targeted consultation sought views on technical and legal issues on whether MiCAR remains fit for purpose in light of evolving market and international developments. AMLA makes recommendations in five areas where targeted amendments or clarifications could help address money laundering and terrorist financing (ML/TF) risks more effectively and support consistent supervision across the EU.

These are:

• Staking, lending and borrowing: AMLA suggests that the EC consider bringing these activities within MiCAR’s regulatory framework, reflecting their specific ML/TF risks.
• Decentralised Finance (DeFi) arrangements: AMLA invites consideration of a clear legal definition and common criteria for identifying who exercises effective control over crypto-asset services or activities through DeFi arrangements.
• Unauthorised stablecoins: AMLA encourages a consistent EU-wide approach that removes legal uncertainty.
• Certain asset-referenced token issuers not considered as obliged entities under the anti-money laundering and countering the financing of terrorism (AML/CFT) framework: AMLA suggests reviewing this interaction, including whether certain token issuers should fall within scope of AML/CFT rules.
• Cross-border supervision of service providers: AMLA sees scope for clearer information requirements to support effective supervision.

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