EU Crypto Regulation Update: Over 1,700 Platforms Forced Out, Up to 10 Million Users at Risk

The European Union's MiCA regulation update has led to over 1,700 unlicensed crypto platforms being forced out of the bloc and 10 million users at risk of losing access to their funds.

As a result of the July 1 deadline, only 323 firms have been granted valid authorization, leaving millions of users vulnerable to scams.

Regulators warn that criminals are now using the migration process as a scam vector, impersonating officials to steal user funds during the transition.

The EU's ESMA MiCA Register is the main verification source for users to check if a platform is authorized. Regulators stress that users should never respond to unsolicited transfer requests or fees from individuals claiming to be regulators or exchange staff.