Quantcast

CEO of AMLBot on MiCA compliance: '75% of VASPs will need to cease their operations'

Binance and Circle announce strategic partnership to advance USDC adoption and crypto innovation
CATO Policy Analyst: Operation Choke Point 2.0 ‘has undermined many of the people trying to work and innovate’
SEC Approves First Crypto Index ETFs Combining Bitcoin and Ethereum
Bitcoin dips to $92K in ‘optimal dip-buying’ move as PCE boosts crypto
Coinbase CEO: 'Crypto is the only payment rail that checks all three boxes'
CATO Policy Analyst: Operation Choke Point 2.0 ‘has undermined many of the people trying to work and innovate’
AI at the service of DeFi: Reflections and perspectives from the Saint-Alex Club
Avara’s Lens secures $31M for SocialFi-focused L2 blockchain
US Federal Reserve (Fed) Continues to Cut Rates by 25 Points: New Highs for Bitcoin?
$300m of other tokens bridged to Solana in the last week, why?
Coinbase sued over WBTC delisting by Justin Sun-affiliated BiT Global
Bitcoin Soars to New Record Highs Over $106K, Let's Hope the Fed Doesn't End the Party
Increased gas limits on Ethereum L1 come with risks… but big rewards
Bitcoin Catches Up With Gold: New ATH for BTC-Gold Ratio
Bitcoin Backed by US Congress: Pro-Crypto French Hill Takes Chair of Finance Committee
BlackRock recommends 1-2% Bitcoin in your portfolio
UK watchdog asks firms to share current and future crypto exposures
Riot acquires 5,117 BTC for $510m
New SEC boss Paul Atkins will transform crypto… but not right away
Bitcoin: For billionaire investor Ray Dalio, only BTC and gold will save from future crises
BTC, XRP, DOGE Price: Dogecoin Drops, Bitcoin Steady Ahead of US CPI
Bitcoin hits level bulls must 'control' for a new $100K BTC price push
Trump reveals his price target for Bitcoin
Billionaire Ray Dalio Prefers Bitcoin Over Bonds
Bitcoin can separate money and state — David Sacks
Crypto Daybook Americas: Bitcoin (BTC) Price Hits Mid-Cycle Peak as Retail Interest in Altcoins Soars
Creating a strategic reserve with bitcoin: US states are exploring this possibility
El Salvador: When the Bitcoin dream meets the economic demands of the IMF
Bitcoin Not Just Money, Reveals Trading Legend Peter Brandt
FDIC asked banks to ‘pause’ crypto activities — Court docs
CEO of AMLBot on MiCA compliance: '75% of VASPs will need to cease their operations'
Web3/Crypto
Webp   20250314t113934 063
Slava Demchuk, Co-founder and CEO of AMLBot | X

Slava Demchuk, CEO of AMLBot, said that the implementation of the Markets in Crypto-Assets Regulation (MiCA) will compel 75% of virtual asset service providers (VASPs) in the European Union to halt operations due to compliance challenges. This assertion was made in an Op-Ed published on March 13.

"The MiCA regulation is, in essence, a good legal framework for the crypto industry, but it also has some disadvantages, especially for crypto startups and small businesses," said Demchuk, Co-Founder and CEO. "Looking at the case of Estonia and its implementation of crypto licenses in 2017, it is possible to predict that around 75% of VASPs will need to cease their operations in the EU. Acquiring a MiCA license is expensive… typically around 30,000-80,000 euros, depending on the business model and country of incorporation. Where does that leave the small businesses and the startups? They will not be equipped to comply with MiCA."

According to the European Securities and Markets Authority (ESMA), MiCA is a comprehensive legal framework established by the European Union to regulate crypto-assets and related services. The regulation aims to enhance consumer protection, ensure financial stability, and foster innovation within the crypto market. It introduces uniform rules across EU member states, covering aspects such as transparency requirements, authorization, and supervision of crypto-asset service providers.

Get the Newsletter
Sign-up to receive weekly round up of news from Crypto Republique
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Legal Nodes reports that MiCA's implementation is expected to impose substantial compliance costs on crypto-asset service providers (CASPs). These costs include licensing fees ranging from €30,000 to €80,000, depending on the business model and country of incorporation. Additionally, CASPs must establish robust operational frameworks including anti-money laundering (AML) and know-your-customer (KYC) procedures, data protection measures, and cyber resilience strategies. This necessitates hiring specialized personnel.

As reported by the Wall Street Journal, companies like Binance and Coinbase continue to face regulatory challenges despite significant investments in compliance. Binance has allocated over $213 million to its KYC and AML programs, securing 21 regulatory approvals including registration with India's Financial Intelligence Unit. Similarly, Coinbase has expanded its global compliance initiatives but remains entangled in legal disputes in both the U.S. and Europe. These obstacles highlight the intense regulatory scrutiny faced even by highly compliant cryptocurrency exchanges.

Demchuk is also the co-founder of AMLBot, a company specializing in anti-money laundering compliance solutions for the cryptocurrency industry. With a background in financial compliance and blockchain analytics, he has been instrumental in developing tools that assist crypto businesses in adhering to regulatory standards. His expertise positions him as a thought leader in navigating the evolving landscape of crypto regulation.

Organizations Included in this History
More News

Here’s how Bitcoin, Ethereum, Binance Coin, and other key cryptocurrencies performed on March 14, 2025.

Mar 15, 2025

Slava Demchuk, CEO of AMLBot, said that the implementation of the Markets in Crypto-Assets Regulation (MiCA) will compel 75% of virtual asset service providers (VASPs) in the European Union to halt operations due to compliance challenges.

Mar 14, 2025

Today’s crypto overview: Price action across Bitcoin, Ethereum, Binance Coin, and more on March 13, 2025.

Mar 14, 2025

Bitcoin, Ethereum, Binance Coin & more: Today's crypto overview — March 12, 2025

Mar 13, 2025

OKX has announced that it has secured full Markets in Crypto-Assets (MiCA) approval amid an ongoing European regulatory investigation into its Web3 platform.

Mar 13, 2025

From Bitcoin to Solana: Here’s how major cryptocurrencies moved today – March 11, 2025.

Mar 12, 2025