EBA Sounds Alarm: Crypto Firms Exploiting MiCA Loopholes Pose ‘Significant’ Threat to EU

The European Banking Authority (EBA) has warned that crypto firms may exploit regulatory gaps during the Markets in Crypto-Assets (MiCA) regulation’s transitional phase, posing a “significant threat” to the EU’s financial system. In its recent supervisory report, the EBA said certain crypto service providers authorized before MiCA’s full implementation in December 2025 could engage in “jurisdiction shopping.” This involves registering in EU member states with weaker oversight and using passporting rights ...