EU crypto rule MiCA triggers surge in scams

The European Union's enforcement of its Markets in CryptoAssets regulation has triggered a wave of fraud, with scammers exploiting the mass migration of users from over 1,700 unlicensed crypto platforms that were forced to cease operations on July 1. Regulators across the bloc report a surge in impersonation schemes targeting the millions of customers now seeking compliant alternatives.

The full implementation of MiCA on July 1 created a significant gap in the market. While more than 1,700 crypto asset service providers were required to stop serving EU clients, only 323 firms held the necessary authorization at the time. This forced a large-scale migration of users, with estimates suggesting as many as 10 million people may need to transfer their digital assets. The transition period has become a prime opportunity for criminals.

Fraudsters are copying the language of genuine migration notices from legitimate exchanges and posing as regulators or licensed platforms. They direct users to fake websites that mimic real services, where victims are prompted to enter credentials or transfer funds, which are then stolen. The European Securities and Markets Authority confirmed it is...