MiCA Transition Fuels Surge in Scams Targeting Crypto Investors

Fraudsters are taking advantage of the transition to new EU crypto regulations, as over 1,700 unlicensed platforms were required to stop serving EU customers after MiCA took effect on July 1. Only 323 firms held valid MiCA authorization at the time, leaving an estimated 10 million users needing to move their digital assets.

The scammers are copying legitimate platform migration notices or posing as regulators to steer users to fake platforms. They may demand upfront fees from victims to recover stolen funds and have been impersonating staff from regulatory bodies such as AMF in France and ESMA. Forged documents and the use of screen-sharing software to open fake crypto accounts are also being used.

Regulators have warned that MiCA's investor protections only apply when services are provided through a legal entity authorized within the EU, urging users to verify authorized platforms and check ESMA's official register before moving assets. The UK Financial Conduct Authority reported 4,465 scam reports in the first half of 2025 involving FCA impersonation, with 480 people suffering actual losses.