European financial watchdogs warn that criminals are exploiting this market transition to steal funds. Fraudsters are impersonating official regulators or licensed exchanges to trick users into sending assets to fraudulent websites.
Key Takeaways
Scammers targeted crypto users after ESMA’s July 1 MiCA deadline by spoofing regulators and exchanges.Over 1,700 unlicensed platforms face shutdowns while Coinbase and 322 others secured MiCA licenses.France’s AMF is avoiding tight deadlines to give users time to pick 1 of 323 licensed exchanges.European regulators say criminals are taking advantage of the disruption caused by the EU’s new crypto rules, impersonating exchanges and watchdogs to steal customer funds. Officials across several member states report a rise in fraud attempts since July 1, the cutoff for crypto companies to obtain licences under the bloc’s Markets in Crypto‑Assets Regulation (MiCA).
According to the Financial Times, firms that failed to secure approval must now halt operations and instruct customers to move their assets, creating an opening for scammers posing as legitimate authorities.
“This moment is an opportunity for scammers more than usual,” said Stéphane Pontoizeau, an executive director at France’s Autorité des Marchés Financiers (AMF). He said the regulator has already seen cases where criminals pretend to be AMF staff or licensed exchanges and direct customers to transfer assets to fraudulent websites.
ESMA said it is aware of attempts to misuse its logo and identity, including falsified documents, to promote scams.
The Netherlands’ Autoriteit Financiële Markten said scammers may target customers who are searching for new licensed providers. The regulator urged traders to verify information through official channels and avoid transferring funds when contacted by unknown third parties.
Tom Keatinge, founding director of the Centre for Finance and Security at the Royal United Services Institute, said regulatory uncertainty often creates “a prime opportunity for fraudsters,” especially as customers face the disruption of wallet providers shutting down.
Some EU countries have reportedly received a wave of last‑minute licence applications, raising questions about how aggressively national regulators can pursue scams and unlicensed operators.
To reduce panic, the AMF has avoided imposing a strict wind‑down deadline on unlicensed firms. Pontoizeau said the regulator wants customers to take time to choose a new provider carefully, rather than rushing into decisions that could expose them to fraud.
The AMF said it will alert law enforcement when it identifies criminals impersonating regulators or licensed companies. Dutch authorities similarly warned traders to be cautious and rely on publicly available information when in doubt.
