The European Banking Authority (EBA) has highlighted the challenges of implementing regulations on cryptocurrencies, especially how some players are exploiting loopholes to avoid compliance with new rules like the Markets in Crypto-Assets (MiCA). This legislation aims to establish uniform regulatory frameworks for crypto service providers across the 27 member states of the bloc. While the EBA report does not name specific firms, it points out that some entities may continue to evade regulations, potentially affecting the stability of the EU’s financial system. One concerning trend identified is ‘regulatory arbitrage,’ where companies secure approvals in countries with less stringent oversight before relocating to areas with looser rules.