Regulatory Updates on AML and MiCA in 2025
As time progresses, financial criminals are adopting increasingly sophisticated tactics, leveraging technology and exploiting systemic vulnerabilities to evade detection and maximize illicit gains. This underscores the importance of conducting regular reviews and updates of applicable laws and regulations.
In 2025, regulatory authorities introduced significant updates to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations, and present updates on the European Regulation on Markets in Crypto Assets (MiCA).
Central Bank of Cyprus (CBC) and Cyprus Securities and Exchange Commission (CySEC) issued several new circulars or directives aimed to strengthen the country’s defenses against financial crime. These updates focused on improving how investment firms and crypto asset service providers handle AML/CTF supervision, sanctions screening, and cross border compliance aligning with evolving EU standards.
Also, MiCA Regulation provides a comprehensive update on the set of guidelines that harmonize the authorization, operation, organization, and governance aspects of crypto assets. It extends its reach to encompass those who act as Crypto Asset Service Providers and issuers of crypto assets, setting uniform standards for this evolving market.
In this article, the SALVUS Regulatory Compliance team takes a closer look at the significant applicable regulatory updates for regulated entities. We break down the key updates and share the most relevant insights below.
1. Key Regulatory Updates in 2025
2. Specific Regulatory Updates for CASPs under MiCA in 2025
We regularly share bite-sized insights on LinkedIn such as those found in this article
1. Key Regulatory Updates in 2025
- Regulatory Technical Standards Consultations
- Screening Systems Guidance Paper
- Updates on verification of customer and beneficial owner
Regulatory Technical Standards Consultation
Early this year, CySEC encouraged regulated entities to participate in a public consultation on draft Regulatory Technical Standards (RTS) by EBA. This is an update on the previous version, which is limited to PSPs and EMIs. The new draft is to extend to CASPs, where crypto-asset service providers (‘CASPs’) should appoint a central contact point to ensure compliance with local anti-money laundering and countering the financing of terrorism (AML/CFT) obligations.
Another announcement for public consultation on draft RTS was organized, this is EBA’s response to the European Commission’s Call for Advice. These are the focus of the proposed RTS for which the EBA is providing its advice.
- AMLA to identify and assess which institutions are subject to direct supervision.
- Unified methodology of ML/TF risk assessment.
- Acceptable source of information.
- Indicators and criteria for sanctions and methodology for periodic penalties.
The European Commission has asked the EBA to prepare the above-mentioned technical standards to support the rapid and effective start of AMLA operations.
Screening Systems Guidance Paper
From April to November 2024, CySEC took a closer look at how well sanctions screening systems were working by conducting focused inspections across a selection of regulated entities. The inspection purpose is to share the outcomes and feedback from these inspections which are collated and published through the guidance paper which rolled out through Circular C685.
Here outlines the best practices identified, overview of the weaknesses or deficiencies which regulated entities can take reference into. Regulated entities are encouraged to use CySEC’s guidance as a reference point, applying the recommended best practices in a way that fits their specific risks and operational needs.
Verification of customer and beneficial owner
Generally, verification of the identity of the customer and UBO is performed before the establishment of a business relationship. As per the updated Circular, verification of the identity of the customer and the beneficial owner may be completed during the establishment of a business relationship exemptions may apply if conditions are met. For ASPs, application of the exemption is not encouraged.
2. Regulatory Updates for CASPs under MiCA in 2025
- Supervisory Briefing of CASPs under MiCA
- EBA and ESMA Guidelines regarding suitability assessment of personnels overseeing CASPs
Supervisory Briefing of CASPs under MiCA
ESMA has released a Supervisory Briefing on the authorization of Crypto-Asset Service Providers (CASPs) under the MiCA. This briefing is designed to help national authorities apply the MiCA regulation when authorizing crypto asset service providers, and to support consistent practices across the EU.
Suitability Assessment
A circular was published for suitability assessment of management body members and shareholders with qualifying holdings, this guideline aims to promote strong governance in financial institutions, while safeguarding market integrity and protecting consumer interests.
This is a joint guideline by European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) applicable to Issuers of Asset-Referenced Tokens (ARTs) and Crypto-Asset Service Providers (CASPs).
In response to this demand, SALVUS Funds, in collaboration with the Institute for Professional Excellence (IforPE), presents a self-study course titled “Regulatory Updates on AML and MiCA in 2025”. This course serves as a comprehensive guide through the dynamic landscape of crypto assets and the ever-evolving regulatory environment.
The SALVUS Regulatory Compliance team can support CIFs, CASPs and other CySEC and CBC regulated entities, with their regulatory requirements and reporting obligations.
Contact us at compliance@salvusfunds.com if you require further guidance or if you have enquiries about our Regulatory Updates course with IforPE.
Should you be interested to read more about AML/CFT compliance related matters or MiCA Regulation, please visit the selected articles below:
- Developing a Compliant AML Manual in 2025: Best Practices for Regulated Firms – SALVUS Funds
- A Practical Guide on AML Risk Assessment and Monitoring Program in 2025 – SALVUS Funds
- Roadmap to Markets in Crypto-Assets (MiCA) Regulation in 2025 – SALVUS Funds
- Review of Regulatory Updates and CySEC Circulars Quarter 1, 2025 – SALVUS Funds
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.