EU Regulators Warn of Impersonation Scams as MiCA Licensing Transition Unfolds

European Union regulators are warning of a rise in impersonation scams after the MiCA licensing rules took effect. Scammers are posing as financial regulators and crypto firms, targeting customers of crypto service providers that failed to obtain an EU license. The fraudsters use fake websites and forged documents to trick users into transferring assets. France's Financial Markets Authority (AMF) said scammers have impersonated its representatives and directed users to move funds through fraudulent websites, according to AMF official Stéphane Pontoizeau. The European Securities and Markets Authority (ESMA) said it has detected abuse of its identity and branding, including the use of forged documents. Under the Markets in Crypto-Assets Regulation (MiCA), crypto companies have needed authorization since July 1 to operate in the EU. Unauthorized firms must wind down or transfer their EU business. An ESMA list updated at the end of July shows only 323 licensed crypto companies so far. By comparison, data provider VASPnet previously estimated that more than 1,700 unlicensed companies would have to stop operations.