EU regulators warn of fraud risks as 1,700 unlicensed crypto platforms halt services, affecting up to 10 million users under new MiCA rules.
Over 1,700 unlicensed crypto platforms ceased serving EU users after the Markets in Crypto-Assets (MiCA) regulation took full effect on July 1. Only 323 firms held valid MiCA authorization, potentially displacing up to 10 million users.
European regulators highlighted a surge in scams exploiting the transition, with fraudsters impersonating regulators or licensed exchanges to lure users into transferring assets to fake platforms. Officials urged users to verify providers against MiCA registers before moving funds.
The shift follows MiCA’s implementation, aimed at increasing oversight and consumer protection in the EU’s crypto market.