Cryptocurrency users have been urged to stay vigilant due to fraudsters attempting to capitalize on the EU's new Markets in Crypto-Assets (MiCA) framework, The Financial Times reports.
Bad actors are impersonating regulators as well as companies to lure their victims.
New opportunities for scammers
As reported by U.Today, cryptocurrency firms are no longer able to offer their services in the EU if they lack the MiCA license. Unlicensed players of the likes of Knaken had to close their doors or transfer their users to licensed providers. More than 1,700 unlicensed firms are expected to cease operations. Even cryptocurrency behemoth Binance has failed to receive an EU-wide license.
Investors who got trapped on unlicensed exchanges had to move their assets, and this has created new opportunities for bad actors who are targeting uninitiated crypto users.
Scammers are trying to coax victims into transferring assets to fraudulent wallets with the help of phishing attacks and other impersonation schemes.
Blockchain analytics firms have repeatedly identified impersonation scams as one of the fastest-expanding categories of crypto crime. Attackers typically use fake websites, forged documents, and social engineering tactics to steal digital assets from unsuspecting users.
Trust but verify
Crypto holders have to independently verify any communication requesting asset transfers and to confirm that a service provider is listed as authorized before moving funds.
Regulators are well aware of the possible risks, which is why, for instance, there is no aggressive migration deadline in France.
In 2025, the European Supervisory Authorities advised consumers to verify whether a crypto service provider is officially authorized under the new framework.
A warning to crypto firms
European regulators have also recently cautioned licensed crypto firms against overstating the level of regulatory protection offered by their products.
Misleading marketing could create confusion among investors about which services actually fall under MiCA's safeguards.
U.Today Editorial Team
Dan Burgin
