EU MiCA Transition Exploited by Crypto Scammers, Warn Regulators

European financial watchdogs warn that criminals are exploiting the transition to the EU’s new Markets in Crypto-Assets Regulation (MiCA) to steal customer funds. Since the July 1 deadline for crypto companies to obtain MiCA licenses, fraudsters have been impersonating official regulators or licensed exchanges to trick users into sending assets to fraudulent websites.

Hundreds of firms that failed to secure approval must halt operations and instruct customers to move their assets, opening a window for scammers posing as legitimate authorities. According to the Financial Times, this disruption is being actively targeted.

“This moment is an opportunity for scammers more than usual,” said Stéphane Pontoizeau, an executive director at France’s Autorité des Marchés Financiers (AMF). He noted cases where criminals pretend to be AMF staff or licensed exchanges and direct customers to transfer assets to fraudulent websites.

The European Securities and Markets Authority (ESMA) lists 323 firms that have obtained MiCA licenses, including major exchanges like Coinbase, Kraken, and OKX. Data provider VASPnet estimates more than 1,700 unlicensed companies must shut down. Binance, the world’s largest crypto trading platform, has not secured approval.

ESMA said it is aware of attempts to misuse its logo and identity, including falsified documents, to promote scams. The Netherlands’ Autoriteit Financiële Markten warned that scammers may target customers searching for new licensed providers. Regulators urge traders to verify information through official channels and avoid transferring funds when contacted by unknown third parties.

Tom Keatinge, founding director of the Centre for Finance and Security at the Royal United Services Institute, said regulatory uncertainty often creates “a prime opportunity for fraudsters,” especially as customers face the disruption of wallet providers shutting down.

To reduce panic, the AMF has avoided imposing a strict wind-down deadline on unlicensed firms. Pontoizeau said the regulator wants customers to take time to choose a new provider carefully, rather than rushing into decisions that could expose them to fraud. The AMF will alert law enforcement when it identifies criminals impersonating regulators or licensed companies.

Source: https://news.bitcoin.com/crypto-news/eu-mica-shake-up-lets-crypto-scammers-target-users/