EU: Fraudsters exploit MiCA transition to defraud crypto investors

European financial regulators have reported a sharp increase in cryptocurrency fraud following the entry into force of licensing requirements under the European Union's Markets in Crypto-Assets Regulation (MiCA), the Financial Times reports .

Starting July 1, 2026, cryptocurrency companies operating in the EU are required to obtain a MiCA license. Those that fail the licensing process must either cease operations or transfer their clients to authorized service providers. This has been exploited by criminals posing as representatives of financial regulators, including the European Securities and Markets Authority (ESMA) and the Financial Market Authority.

Fraudsters use the logos and names of regulatory agencies, creating fake documents and websites that mimic official services. They persuade users to transfer assets under the pretext of "regulatory protection" or "regulatory compliance."

In this regard, EU regulators have urged investors to carefully check any communications purporting to be from regulators or crypto companies, check the official ESMA register, and not transfer assets via links in suspicious emails.

According to the Financial Times and European regulators, ESMA's public register listed 323 cryptocurrency companies with MiCA authorization across the EU as of the end of July 2026. Before MiCA, more than 3,000 crypto firms operated in the region.