EU MiCA Shake-Up Opens Floodgates for Crypto Scammers

The EU's new crypto regulations have created an opportunity for scammers to target users. European financial watchdogs are warning that criminals are exploiting this market transition to steal funds.

After the July 1 deadline for crypto companies to obtain licences under the bloc's Markets in Crypto-Assets Regulation (MiCA), officials across several member states report a rise in fraud attempts. Scammers are impersonating exchanges and watchdogs to trick users into sending assets to fraudulent websites.

The European Securities and Markets Authority (ESMA) lists 323 firms that have obtained MiCA licences, while data provider VASPnet estimates more than 1,700 unlicensed companies must shut down. Major exchanges including Coinbase, Kraken and OKX have secured approval while Binance has not.

France's Autorité des Marchés Financiers (AMF) is avoiding tight deadlines to give users time to choose one of the licensed exchanges carefully, rather than rushing into decisions that could expose them to fraud.