- Fraudsters are impersonating European regulators like ESMA and crypto exchanges to exploit customers moving funds after the MiCA registration deadline.
- Over 1,700 unlicensed crypto firms must cease EU operations, while only 323 have secured a MiCA license as of July 1.
- Chainalysis estimates global crypto scam and fraud losses hit $17 billion last year, up from $6 billion in 2020.
European regulators are warning that criminals are impersonating officials and exchanges to steal from people caught in the mass shutdown of unlicensed crypto firms, according to the Financial Times. The warning follows the July 1 deadline for companies to register under the EU’s Markets in Crypto-Assets Regulation.
ESMA said it is aware of fraudulent documents misusing its logo, while Stéphane Pontoizeau of France’s AMF called the transition period a golden opportunity for scammers. The AMF has recorded cases where fraudsters posed as its staff, directing customers to fake websites to transfer assets.
Consequently, only 323 firms appear on ESMA‘s updated license register, yet data provider VASPnet estimates over 1,700 unlicensed firms must wind down. Coinbase, Kraken, and OKX have secured licenses, but Binance remains the largest unlicensed firm after withdrawing its Greek application. The Dutch regulator AFM urged traders to verify any fund-moving requests against official provider apps and websites.
Meanwhile, Chainalysis data shows total crypto scam and fraud losses reached $17 billion last year. The AMF has declined to set an aggressive wind-down date for France, arguing that manufactured urgency fuels scams, and will refer impersonation cases to law enforcement.
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