Scammers impersonate regulators and exchanges as 1,700 unlicensed firms shut down under MiCA rules, heightening fraud risks.
Fraudsters are posing as European regulators and crypto exchanges to target investors affected by the EU’s MiCA licensing deadline. Over 1,700 unlicensed firms must cease operations after failing to secure approval by July 1, creating urgency for clients to move funds.
Only 323 firms appear on the EU’s official register, leaving thousands of customers vulnerable. Crypto scam losses reached $17 billion in 2023, up from $6 billion in 2020, according to Chainalysis. Regulators warn the transition period is a prime opportunity for fraud.
French authorities report cases of scammers impersonating staff to deceive customers of unlicensed firms. The AMF and other watchdogs urge caution as investors navigate the shutdown.