MiCA Deadline Sparks Rise in Crypto Scams Across Europe

EU financial watchdogs have warned of rising crypto scams in the wake of the MiCA licensing deadline. The deadline, which passed on July 1, required crypto companies to secure bloc-wide authorization and has left over 1,700 unlicensed firms at risk of being forced out of the European market.

Criminals are taking advantage of the disruption by impersonating regulators and licensed crypto companies, targeting customers as they transfer funds between platforms. The European Securities and Markets Authority (ESMA) has reported that fraudsters are misusing its logo, identity, and forged documents to create trust in their schemes.

Regulators have advised customers to verify official websites and public registers before transferring funds, rejecting requests involving unknown wallets or unofficial communication channels. Major exchanges such as Coinbase, Kraken, and OKX have received licenses under the new framework, but Binance has not secured authorization across the bloc.