EU Crypto Scammers Exploit MiCA Transition

European regulators have warned that scammers are exploiting the transition to the EU's new crypto rules, MiCA, to steal funds from users. The Markets in Crypto-Assets Regulation (MiCA) came into effect on July 1, requiring all cryptocurrency companies operating in the bloc to obtain a license.

Criminals are impersonating official regulators or licensed exchanges to trick users into sending assets to fraudulent websites. According to Stéphane Pontoizeau, an executive director at France's Autorité des Marchés Financiers (AMF), 'this moment is an opportunity for scammers more than usual.'

The AMF has seen cases where criminals pretend to be staff or licensed exchanges and direct customers to transfer assets to fraudulent websites. The regulator has avoided imposing a strict wind-down deadline on unlicensed firms, giving users time to choose a new provider carefully.

Over 1,700 unlicensed platforms face shutdowns while 323 others secured MiCA licenses. Major exchanges including Coinbase have obtained approval, but Binance, the world's largest crypto trading platform, has not.