EU warns of crypto scams after MiCA deadline

European Union financial regulators are warning cryptocurrency investors of a significant rise in sophisticated scams exploiting the recent implementation of the bloc's landmark Markets in Crypto-Assets (MiCA) regulation. Fraudsters are impersonating financial authorities and licensed crypto firms to steal assets from users who are moving funds following the July 1 licensing deadline.

The European Securities and Markets Authority (ESMA) and national watchdogs, including France's Autorité des Marchés Financiers (AMF) and the Dutch Autoriteit Financiële Markten, have reported a surge in fraudulent activity. Scammers are circulating fake notices and creating phishing websites that mimic official branding, often using ESMA's name and logo or posing as staff from national regulators. These communications falsely instruct users to urgently transfer their crypto assets to supposedly approved accounts or complete verification procedures, preying on confusion during the regulatory transition.

The scams coincide with a major shift in the European crypto landscape. Under MiCA, which took full effect on July 1 after a transition period, crypto-asset service providers must obtain...