Fraudsters exploit the EU’s new crypto licensing rules to impersonate regulators and firms, targeting customers of unlicensed providers.
European Union watchdogs have reported a surge in impersonation scams targeting customers of crypto firms that failed to secure licenses under the Markets in Crypto-Assets (MiCA) Regulation. Criminals are using fake websites and falsified documents to pose as regulators or licensed providers, directing users to transfer assets to fraudulent platforms.
The July 1 deadline required crypto firms to obtain authorization or cease EU operations, leaving over 1,700 unlicensed companies to wind down. Only 323 firms had secured licenses by the end of July, according to data from the European Securities and Markets Authority (ESMA).
France’s AMF and ESMA have both identified cases of scammers misusing their identities and logos, including falsified documents. Regulators warned customers searching for alternative providers are particularly vulnerable to these schemes.