Fraudsters are impersonating EU regulators and exchanges to steal from customers forced to move crypto after the MiCA deadline, watchdogs across the bloc warn.
Alpha Score of 37 reflects weak overall profile with weak momentum, weak value, poor quality, moderate sentiment.
Fraudsters are posing as European regulators and crypto exchanges to steal from customers caught in the shutdown of unlicensed firms, watchdogs across the bloc told the Financial Times.
Companies that missed the July 1 deadline to obtain a license under the EU's Markets in Crypto-Assets Regulation are now operating illegally. They must tell customers to withdraw or move their holdings. Only 323 firms appear on the register that the European Securities and Markets Authority updated at the end of July. Data provider VASPnet estimated last month that more than 1,700 unlicensed companies would have to cease operating.
That puts a large number of people in the position of hurriedly moving funds to an unfamiliar provider. It is precisely the moment criminals want. "This moment is an opportunity for scammers more than usual," Stéphane Pontoizeau, an executive director at France's markets regulator the Autorité des Marchés Financiers, told the FT.
The AMF has recorded cases of fraudsters posing as its own staff. They tell customers of unlicensed firms to transfer assets to a fake website. ESMA said it is aware of "fraudulent practices involving the misuse of ESMA's logo and identity," including falsified documents used to promote scams. The Dutch regulator Autoriteit Financiële Markten said traders should treat any third-party request to move funds with caution and verify it against the provider's official website and app.
The AMF has declined to set an aggressive wind-down date for unlicensed firms operating in France. It reasons that manufactured urgency pushes people into scams. The regulator has urged customers to take their time choosing a replacement provider. Pontoizeau said the AMF will refer cases to law enforcement where criminals impersonate it or licensed companies.
MiCA replaced a patchwork of national regimes with a single authorization that passports across all 27 member states. Its transition period ended on July 1. Coinbase, Kraken and OKX are among those licensed. Binance is the largest firm without one. It withdrew its application in Greece in June after reports that the regulator would reject it, and said it would seek approval elsewhere. Spain's securities regulator ruled out any extension days before the cut-off.
Chainalysis puts losses to crypto scams and fraud at $17 billion last year, a projection based on historical trends, against $6 billion five years earlier. Impersonation is among the fastest-growing categories it tracks. For anyone moving funds, the safest route is to verify every request against the provider's official site and app, and to treat any unsolicited contact with suspicion. The crypto market analysis section tracks scam trends, and reviews of best crypto brokers can help identify regulated platforms.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.