MiCA-driven scam wave in the EU: Following the implementation of the EU Markets in Crypto-Assets (MiCA) regulation, regulators report an increase in scams since the July 1 enforcement date. When MiCA came into force on July 1, more than 1,700 unlicensed crypto platforms were required to stop serving EU customers and to direct them to licensed alternatives. Authorities estimated that up to 10 million users were told to move their digital assets.
The full enforcement of the EU Markets in Crypto-Assets (MiCA) regulation on July 1 mandated significant changes for the crypto market in Europe. More than 1,700 unlicensed crypto platforms were instructed to cease operations with EU customers and push them towards licensed options. This regulatory requirement was in response to the need for standardization and increased security in the crypto space, but it also created a logistical shift for platform operators and users alike. At the time of enforcement, only 323 companies were verified to have valid MiCA authorization, creating a highly condensed pool of legal providers for users.
As a result, an estimated 10 million crypto users were directly affected, necessitating the relocation of their digital assets to platforms with proper licensing. This migration not only disrupted user routines but also served as a fertile ground for potential exploitation by malicious entities. The rapid and widespread redirection of users underscored the need for robust consumer protection mechanisms in transitioning to a regulated crypto environment.
Since the enforcement of the MiCA regulations on July 1, there has been a significant rise in crypto scams across the European Union. These scams, often involving impersonation tactics, have targeted users adjusting to the new regulatory landscape. France’s Autorité des marchés financiers (AMF) reported incidents where scammers posed as AMF employees, tricking victims into paying upfront fees under the guise of recovering stolen funds. Similarly, the European Securities and Markets Authority (ESMA) acknowledged misuse of its identity by criminals, who used ESMA’s name, logo, and falsified documents to deceive users.
In the UK, the Financial Conduct Authority (FCA) noted a marked increase in impersonation-related scams, with 4,465 reports in just the first half of 2025. These scams often involved fraudsters claiming that they had found funds in illegally opened crypto wallets in victims’ names. Victims were then misled into using screen-sharing software, which was covertly employed to create fake crypto accounts under their identities. Additionally, data from WhiteBIT indicated that 41% of crypto incidents over the last year involved fake investment offers or impersonations.
The Netherlands’ Authority for the Financial Markets (AFM) further warned that the migration occurring due to the MiCA implementation could itself serve as an attack vector for scammers. This period of transition, with users required to shift to compliant platforms, has been exploited by malicious actors aiming to deceive and defraud users in the volatile crypto landscape. The AFM’s warnings highlight the critical need for users to exercise increased vigilance during such regulatory transitions.
The MiCA-driven migration of crypto platforms has been accompanied by persistent challenges from scams and regulatory impersonations, with authorities reporting increased malicious activity targeting users during the transition. Regulators’ observations across multiple jurisdictions emphasize that this period of regulatory change has highlighted vulnerabilities in the user migration process and underscored the need for continued vigilance and enforcement to protect consumers.
