MiCA Scammers Exploit New EU Crypto Rules

The European Union's new Markets in Crypto-Assets regulation (MiCA) has created an opportunity for scammers to target crypto exchange customers, according to regulators.

Since July 1, when MiCA became fully applicable, around 320 organizations have obtained licenses. However, over 1,700 companies are at risk of being forced to stop operating in the EU due to failing to meet the new rules.

Stéphane Pontoizeau, executive director of France's Financial Markets Authority (AMF), stated that the transition period has created favorable conditions for scammers. The AMF has identified cases where fraudsters posed as regulator employees and instructed customers to transfer crypto assets to fake websites.

The Dutch Authority for the Financial Markets also warned about a similar threat, saying that fraudsters may target investors searching for an alternative licensed platform after their previous provider leaves the market.