Criminals are using fake websites and falsified documents to target customers searching for licensed cryptocurrency providers. The activity follows the July 1 deadline for firms to obtain authorization under the Markets in Crypto-Assets (MiCA) Regulation.
Fraudsters are impersonating financial regulators and crypto businesses to target customers of service providers that have failed to secure European Union licenses, according to officials cited by the Financial Times. Several European Union watchdogs have reportedly seen an increase in scams since the July 1 deadline.
Companies that failed to secure MiCA approval must wind down or transfer their EU operations, forcing customers to move their assets. Firms failing to secure authorization by the July 1 deadline must wind down or restrict services to EU clients.
Regulatory impersonation
Stéphane Pontoizeau, an official at France’s Autorité des Marchés Financiers (AMF), said the regulator encountered cases in which fraudsters impersonated AMF representatives, directing users to transfer assets to them through fake websites.
The European Securities and Markets Authority (ESMA) said it was aware of scammers misusing its identity and logo, including through falsified documents. ESMA warned that criminals may target customers searching for an alternative licensed provider.
Licensing landscape
Crypto companies that had obtained licenses according to an ESMA list updated at the end of July.
Data provider VASPnet previously estimated that more than 1,700 unlicensed companies would need to cease operations.
