The Laundromat – April Edition 2026

A closer look at crypto under the EU-AML-Regulation

Welcome to the April edition of The Laundromat. This month, we turn our attention to the crypto sector and examine how the upcoming EU Anti-Money Laundering Regulation (EU-AMLR) is set to reshape the landscape.

To provide expert perspective, we spoke to Dr. Lars Haffke, external Money Laundering Reporting Officer (MLRO), Salary Partner at pikepartners, and an established lecturer, editor, author, and speaker. In the third part of our interview series, he shares his view on the regulatory challenges and opportunities facing crypto market participants.

Interview with Dr. Lars Haffke (Part 3)

Crypto, Compliance, and the Realities Behind the Narrative

The crypto market continues to attract attention in connection with money laundering risks. Against this backdrop, we asked Dr. Lars Haffke:

Which aspects of the EU-AMLR will be particularly challenging for Crypto Asset Service Providers (CASPs) and similar players? And will the regulation meaningfully strengthen protections against financial crime?

“One often hears that crypto is used only by criminals and that it is all about money laundering. That is simply not true. There are many legitimate business models and users of crypto assets. This is reflected not only in my own experience but across the entire industry. Institutions from the traditional financial market are increasingly embracing this new technology, most recently including the German regional banks (“Sparkassen”).

However, there are also suspicions of money laundering and terrorist financing in the crypto business. This was recently highlighted explicitly by Bruna Szego, Chair of AMLA. These risks must be identified, reported, and guarded against.

The EU AML Regulation applies to crypto-asset service providers in the same way it does to financial institutions. All challenges apply equally to them, yet there are also strong opportunities. Their business models are inherently more digital, and data driven, allowing them to respond more quickly to KYC related challenges. Transaction monitoring via Blockchain analytics tools is already well established in the crypto industry. Industry-wide challenges such as the Travel Rule and the ongoing shortage of skilled professionals also affect crypto-asset service providers.

Whether the new EU AML Regulation will improve protection against money laundering remains to be seen. Like the German Anti Money Laundering Act (GwG) before it, the regulation pursues both preventive and repressive approaches, such as suspicious activity reporting. Since the underlying concept remains unchanged, much will depend on how AMLA interprets certain provisions and how effectively supervisory authorities enforce them.”

In Case You Missed it: AML News Highlights

Crypto’s growing role and persistent scrutiny

While crypto assets have become firmly embedded in the portfolios of private investors and the broader financial system, concerns around money laundering continue to generate headlines. With the EU-AMLR set to become binding in July 2027 and AMLA assuming a central supervisory role, expectations are rising that regulatory clarity will strengthen investor protection and market integrity.

Allegations Against Circle Raise Compliance Questions

Independent blockchain investigator ZachXBT has accused Circle, the operator of the USDC stablecoin, of failing to take sufficient action against suspicious transactions over several years. The core criticism centers on the company’s reluctance to freeze accounts proactively, with interventions often occurring only after court orders.

Despite marketing itself as a regulated entity with a strong compliance framework and retaining the technical ability to restrict access to suspicious actors, Circle is alleged to have taken limited action in practice. According to the claims, this allowed criminals to move significant volumes of funds, with reported losses exceeding 420 million US dollars in USDC across known cases.

We obtained the information about the money laundering cases involving Circle from an article by the German Blockchain-Welt.

Investigations in Germany Following Multimillion Euro Crypto Inheritance

Authorities in Baden-Württemberg and Hesse have launched a major investigation into suspected money laundering and tax evasion linked to a cryptocurrency inheritance valued at approximately 64 million euros.

Searches of residential and commercial properties led to the seizure of digital wallets, luxury vehicles, cash, and data storage devices. The case centers on a woman who allegedly failed to disclose control over inherited crypto assets to tax authorities, as well as two individuals accused of assisting in concealing the origin of the funds.

The investigation was triggered by a suspicious activity report filed by the Stuttgart Stock Exchange and is being led by the Baden-Württemberg Taskforce on Financial Crime. The German news media “Die ZEIT” reported on this in end of March, citing a report from DPA Baden-Württemberg.

BaFin Warning Highlights Risks for Investors

Germany’s financial regulator BaFin has issued a warning regarding offers from Calculus Investments Ltd., a company claiming ties to New York and Frankfurt and promoting its services via a website and the “GVEXPRO” crypto trading app.

According to BaFin, the alleged founder likely does not exist, and there is a high probability that invested funds cannot be recovered. The case serves as a reminder of the continued risks posed by fraudulent schemes in the digital asset space.

Click here for the full BaFin announcement regarding Calculus Investments Ltd. dated April 1, 2026.

Good News

Switzerland Prepares for the EU-AMLR Era

Switzerland is taking proactive steps to align with the evolving European regulatory framework. In March 2026, the Swiss government adopted a comprehensive plan to combat money laundering and terrorist financing.

The initiative aims to strengthen enforcement mechanisms while safeguarding Switzerland’s position as a leading financial center. A key focus lies on improving investigative tools and enhancing risk assessment capabilities.

With the EU AMLR set to take effect in July 2027, these measures signal Switzerland’s intent to remain closely aligned with European standards, particularly for institutions operating across borders.

We found this Reuters report on March 20, 2026.

Further Reading

Customer Due Diligence (CDD)

The introduction of the EU AMLR will also bring changes to Customer Due Diligence requirements. A clear understanding of the four core steps of CDD will be essential for compliance going forward. Further details on CDD can be found in the WebID glossary.