EU Watchdogs Warn of Impersonation Scams Amid Crypto Licensing Shakeout
Fraudsters are targeting customers of unlicensed crypto service providers in the European Union by impersonating financial regulators and businesses, according to officials.
The scams have increased since July 1, when companies were required to obtain authorization under the Markets in Crypto-Assets (MiCA) Regulation. Companies that failed to secure approval must wind down or transfer their EU operations, forcing customers to move their assets.
Stéphane Pontoizeau, an official at France's Autorité des Marchés Financiers (AMF), said the regulator encountered cases in which fraudsters impersonated AMF representatives, directing users to transfer assets to them through fake websites.
The European Securities and Markets Authority (ESMA) warned that criminals may target customers searching for an alternative licensed provider. As of July 31, only 323 crypto companies had obtained licenses, according to ESMA's list.