[European Banking Authority Warns of Regulatory Arbitrage Risks During MiCA Transition Period] The European Banking Authority (EBA) has released a report warning of regulatory risks during the transition period of the EU's Markets in Crypto-Assets Regulation (MiCA). MiCA is set to be fully implemented by the end of 2024, establishing unified regulatory rules for crypto asset service providers across the EU's 27 member states. However, the EBA noted that some crypto entities may engage in 'regulatory arbitrage' to evade oversight, such as obtaining licenses in countries with more lenient approval processes and then expanding operations to other regions. Additionally, the report highlighted that certain crypto companies lack clear ultimate beneficial owners and governance structures, potentially serving as channels for money laundering. One virtual asset service provider (VASP) was found to be jointly operated by over 20 unregulated entities outside the EU. Although MiCA will be fully effective, the transition period extends until July 1, 2026, allowing entities that fail to meet authorization requirements to continue operating during this time, posing a threat to the integrity of the EU's financial system.