EU MiCA Shake-up Lets Crypto Scammers Target Users

European regulators are warning that fraudsters are exploiting the EU's MiCA transition, impersonating exchanges and watchdogs to steal customer funds. The warning follows the July 1 cutoff for crypto companies to obtain licences under the bloc's Markets in Crypto-Assets Regulation (MiCA). Firms that failed to secure approval must halt operations and instruct customers to move their assets, according to the Financial Times.

"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 said the regulator has already seen cases where criminals pretend to be AMF staff or licensed exchanges and direct customers to transfer assets to fraudulent websites.

Hundreds of companies previously operating under national rules have been forced to wind down or exit the EU, the Financial Times reported. The European Securities and Markets Authority (ESMA) lists 323 firms that have obtained MiCA licences, while data provider VASPnet estimates more than 1,700 unlicensed companies must shut down.

Coinbase and Kraken have secured approval, along with OKX, according to ESMA's list. Binance, the world's largest crypto trading platform, has not appeared on the list. Customers of unlicensed platforms face the task of moving funds to a new provider.

ESMA said it is aware of attempts to misuse its logo and identity, including falsified documents, to promote scams. The Netherlands' Autoriteit Financiële Markten said scammers may target customers who are searching for new licensed providers. The regulator urged 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 when customers face the disruption of wallet providers shutting down.

Some EU countries have received a wave of last-minute licence applications, according to the Financial Times, which said the late applications raise questions about how aggressively national regulators can pursue scams and unlicensed operators. The AMF has avoided imposing a strict wind-down deadline on unlicensed firms, Pontoizeau said. He 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 said it will alert law enforcement when it identifies criminals impersonating regulators or licensed companies. Dutch authorities similarly warned traders to be cautious and rely on publicly available information when in doubt.