PARIS (Realist English). The introduction of new cryptocurrency regulations in the European Union has resulted not only in a market “cleanse” but also in a surge of fraud.
Since 1 July 2026, when the Markets in Crypto‑Assets (MiCA) regulation came into force, European regulators have recorded a spike in attacks in which criminals impersonate supervisory bodies and crypto exchanges to defraud clients of unlicensed platforms.
As of the end of July, only 323 crypto companies have obtained licences, while more than 1,700 unlicensed firms have been forced to cease operations in the EU.
A perfect storm: how MiCA rules created opportunities for fraudsters
The MiCA regulation required all crypto companies operating in the EU to obtain a pan‑European licence. Those who failed to do so were required from 1 July to cease operations in the EU and instruct their clients to withdraw or transfer assets to licensed platforms.
It is precisely this massive and legitimate need to move funds that has created ideal conditions for scammers. As Tom Keatinge of the Royal United Services Institute (RUSI) told the Financial Times, people who are faced with the need to leave their platforms become more vulnerable to traps. Stéphane Pontoise, an official representative of the French regulator AMF, described the moment as “an opportunity for scammers more than usual.”
Fraud schemes: who steals and how
Regulators describe a typical scenario: scammers contact clients of unlicensed crypto platforms, posing as exchange employees or regulator representatives, and convince victims to transfer funds to a fake website or wallet controlled by criminals.
Among the institutions whose names and logos are used by fraudsters are:
- European Securities and Markets Authority (ESMA) – scammers forge documents with the ESMA logo and use it to give schemes an air of officialdom.
- French Financial Markets Authority (AMF) – cases have been recorded of criminals posing as AMF representatives and directing users to fake websites.
- Dutch regulator (AFM) – also warned that scammers may target consumers looking for a licensed alternative.
It is also noted that scammers disguise themselves as crypto exchange employees. Clients of Binance – the world’s largest exchange, which did not obtain a MiCA licence and ceased serving EU clients on 1 July – have proven particularly vulnerable.
Scale of the problem: $17 billion in losses and growing risks
The problem extends far beyond a single regulatory transition. According to analytics firm Chainalysis, total losses from crypto fraud in 2025 reached $17 billion, compared to just $6 billion five years earlier. Impersonation fraud is among the fastest‑growing categories.
Against this backdrop, regulators are urging users to exercise extreme caution: check platform licences through official registers, do not trust unsolicited fund transfer requests, and ignore messages from “regulator representatives” demanding money transfers.
The licensing process is ongoing, and the number of authorised companies will grow. However, the transition period, during which clients of unlicensed platforms will be forced to seek alternatives, may drag on. According to VASPnet estimates, more than 1,700 companies have yet to wind down their EU operations.
Until this process is complete, scammers will continue to exploit the chaos and uncertainty. The only defence for users is vigilance, verification through official channels, and distrust of any unsolicited instructions to transfer funds.
