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EU Regulators Warn Crypto Users of Impersonation Scams During MiCA Transition

EU Regulators Warn Crypto Users of Impersonation Scams During MiCA Transition

Regulators report fraudsters are posing as authorities to target crypto investors across the EU.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 6 August 2026 17:42 IST

EU Regulators Warn Crypto Users of Impersonation Scams During MiCA Transition

Photo Credit: Unsplash/GuerrillaBuzz

Fraudsters are exploiting the MiCA licensing transition to target crypto users

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Highlights

Scammers impersonate regulators through fake documents and websites
More than 1,700 unlicensed crypto firms may exit the EU market
ESMA urges investors to verify regulated service providers carefully

Fraudsters are using the identity of financial regulators and cryptocurrency firms in an attempt to defraud customers of crypto firms that have not obtained licenses from the European Union (EU), says a report by The Financial Times. Some of the bloc's regulators have reportedly noted an increase in fraud cases following the implementation of the Markets in Crypto-Assets (MiCA) regulation as of July 1, which required companies to get authorisation. Crypto exchanges that did not get their authorisations had to close down their EU operations or sell them off, forcing their users to shift their investments.

Fraudsters Exploit MiCA Licensing Shift to Target Crypto Investors

The report further stated that a member of the French Autorité des Marchés Financiers (AMF), Stéphane Pontoizeau, said there have been instances where fraudsters have posed as AMF officials and asked victims to send their money to them via phishing websites. According to the European Securities and Markets Authority (ESMA), there have been cases where fraudsters have abused the identity and brand image of the authority using fabricated documentation. ESMA also emphasised that it is important to note that criminals will target clients who are looking for another regulated service provider.

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As per an ESMA list, which was revised in late July, only 323 cryptocurrency firms have managed to secure their licenses. As per a LinkedIn post by VASPnet data provider, more than 1,700 unlicensed firms would be forced to shut down. The post also stated that, “Over the coming weeks, VASPnet will map key jurisdictions to examine which countries are emerging as MiCA hubs, how firms are deploying passporting across the bloc and which former registration centres are losing market share.”

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While EU authorities are battling such fraudsters, in early June, the New York State Department of Financial Services (NYDFS) and the European Banking Authority (EBA) agreed to sign a Memorandum of Understanding (MoU) that requires both entities to oversee cross-border stablecoin activities. The EBA stated that this deal is part of its responsibilities under the MiCA regulation, and it requires them to set out procedures and a set of principles for exchanging information and tackling risks between the EBA and NYDFS.

A report released by payments infrastructure company Decta said that the market capitalisation of euro-stablecoins that are MiCA-compliant increased by 128 percent in the year before the conclusion of the transition period under MiCA. According to Decta, the total market capitalisation of the eight euro stablecoins that complied with MiCA increased to $673.9 million (roughly Rs. 6,435 crore) as at June 28, 2026, compared to $295.6 million (roughly Rs. 2,823 crore) as at June 30.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto Frauds, Crypto Scams, Cryptocurrency, MiCA Legislation

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More