Fraudulent actors are posing as regulators and legitimate crypto exchanges to exploit users migrating their accounts following the EU's MiCA deadline.
By Olivier Acuna|Edited by Jamie Crawley6 min ago3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Hundreds of crypto exchanges notified millions of users they were shutting down on July 1 in the EU, an opportunity scammers turned into "hunting season". (Boitumelo/Unsplash)The EU's recent regulatory overhaul concerning cryptocurrencies has inadvertently equipped scammers with new tactics.
As the Markets in Crypto-Assets (MiCA) regulations took effect on July 1, over 1,700 unlicensed crypto platforms were ordered to cease operations for EU customers and redirect them to authorized alternatives. At that time, only 323 companies were compliant with MiCA regulations. This situation left up to 10 million users scrambling to find new platforms, creating fertile ground for fraudsters.
The scam tactics are alarmingly simple. Criminals replicate the language of legitimate migration notifications, impersonate regulatory bodies, and lure users to counterfeit platforms before they can detect the fraud.
Concerns over social engineering scams had already been rising in 2025. Crypto exchange WhiteBIT reported that nearly 41% of crypto-related incidents last year involved malicious entities deceiving individuals through fake investment schemes or impersonation. Following the July 1 deadline, European regulators noted an uptick in crypto scams.
A representative from France's Autorité des marchés financiers (AMF) stated that scammers have been posing as AMF officials, tricking victims into paying upfront fees to recover supposedly stolen funds.
The European Securities and Markets Authority (ESMA) confirmed it is aware of criminals exploiting its identity, name, and logo, utilizing forged documents to convince users that their assets are at risk.
The Netherlands' Authority for the Financial Markets (AFM) cautioned that the migration of unregulated exchanges presents a prime opportunity for fraud. "Fraudulent actors may indeed see an opportunity to scam retail investors who are in the process of looking for an alternative licensed provider," the AFM stated. They urged users to confirm any provider's legitimacy through the official ESMA register prior to transferring assets and advised skepticism towards unsolicited requests for fund transfers.
Austria's Financial Market Authority also issued a warning, informing retail crypto users that numerous platforms lost their legal status on July 1 and urging them to verify providers against official databases to prevent falling into migration traps.
Regulatory Alerts
The tactics employed by scammers closely mirror patterns familiar to regulators. The U.K.'s Financial Conduct Authority (FCA) reported having 4,465 instances of fake FCA impersonations recorded in the first half of 2025, with 480 victims deceived into losing money.
One prevalent method involves fraudsters claiming that the FCA has recovered funds from a crypto wallet opened without the victim's consent. The FCA noted that screen-sharing software is increasingly being utilized to create fake crypto accounts on behalf of victims.
Legitimate exchanges are communicating with customers regarding withdrawals, transfers, and account limitations, which facilitates fraudsters in mimicking official messages and instilling a sense of urgency.
Both the AFM and AMF reiterated that they never request funds to be transferred or contact customers through private messages. The AMF posts warnings on its website, while the AFM directs investors to its own register in conjunction with ESMA's.
For users navigating the migration process, regulators consistently advise: confirm the specific legal entity with MiCA authorization, rather than merely relying on a parent brand, before transferring any assets.
Protections under MiCA apply solely when users engage with a regulated EU entity. A broader brand's license in another jurisdiction does not extend to all subsidiaries.
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