EU watchdogs warn of impersonation scams amid MiCA licensing shakeout
Criminals are reportedly using fake websites and falsified documents to target customers searching for licensed crypto providers.
The European Union's regulatory bodies have issued warnings about a surge in impersonation scams as the market for crypto service providers undergoes a licensing overhaul. Criminals are exploiting fake websites and forged documents to deceive customers searching for licensed crypto providers, according to officials quoted by the Financial Times.
The European Union's crackdown on crypto businesses, introduced by the Markets in Crypto-Assets (MiCA) Regulation, came into effect on July 1, requiring firms to secure authorization to operate within the bloc. Companies that failed to obtain approval are now forced to shut down or transfer their EU operations, leaving customers scrambling to safeguard their assets.
French financial regulator, Stéphane Pontoizeau of the Autorité des Marchés Financiers (AMF), reported encountering instances where fraudsters impersonated AMF officials, directing users to move their assets to fraudulent websites. The European Securities and Markets Authority (ESMA) confirmed it had come across scams involving the misuse of its identity and logo, often via counterfeit documents.
ESMA cautioned that criminals may target customers seeking licensed alternatives, with only 323 crypto companies holding valid licenses as of mid-July. The regulator's list, updated at the end of July, reveals that over 1,700 unlicensed companies must cease operations due to the new rules. The crypto service landscape is further impacted as Binance prepares to face limitations in EU services following the implementation of MiCA regulations.
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