Scammers posing as regulators surface as MiCA license deadline reshuffles EU crypto firms 🎭

European regulators are warning customers about a rise in impersonation scams tied to crypto firms that failed to secure authorization under the European Union's Markets in Crypto-Assets (MiCA) Regulation, which took effect on July 1. Companies without approval are required to wind down or transfer their EU operations, forcing customers to relocate assets during a period officials describe as a prime hunting ground for fraudsters.

Stéphane Pontoizeau, an official at France's Autorité des Marchés Financiers (AMF), said the regulator has encountered cases in which fraudsters impersonated AMF representatives and directed users to transfer assets to them through fake websites. "Customers searching for an alternative licensed provider" are among the targets, according to the European Securities and Markets Authority (ESMA), which said it is aware of scammers misusing its identity and logo, including through falsified documents.

The licensing shakeout is reshaping the bloc's crypto sector. According to an ESMA list updated at the end of July, only 323 crypto companies had obtained MiCA licenses. Data provider VASPnet previously estimated that more than 1,700 unlicensed companies would need to cease operations, a gap regulators say is fueling fraudulent activity aimed at displaced customers.

Officials across the bloc have reported similar patterns, with watchdogs identifying websites, documents and communications designed to mimic the look and wording of legitimate regulators. ESMA has urged customers to verify any contact claiming to be from a regulator and to confirm licensed providers through official registers before moving funds.

The warnings follow recent service reductions at major platforms operating in the EU. Binance, which has not secured a MiCA license in several member states, has faced limits on services for EU users under the new rules.