EU watchdogs warn scammers are posing as crypto firms and regulators after MiCA deadline: FT

EU financial watchdogs have warned of a rise in scams after fraudsters began exploiting the Markets in Crypto-Assets (MiCA) regulation by impersonating crypto firms and regulators.

The Financial Times reported Thursday that EU officials said scammers are targeting users of crypto exchanges that failed to secure authorization by the July 1 deadline under MiCA.

Exchanges that secured MiCA authorization can operate across the EU under a single regulatory regime, while crypto firms left without licenses must wind down or restrict services to EU clients. 

The moment has presented "an opportunity for scammers more than usual," said Stéphane Pontoizeau, executive director of the market intermediaries and market infrastructure supervision directorate at Autorité des Marchés Financiers (AMF), the French financial regulator.

Pontoizeau said the watchdog has identified cases where suspects posed as AMF staff and told customers to transfer their assets to fraudulent websites. The AMF has also avoided setting an aggressive deadline for unlicensed exchanges to halt operations in an effort to limit such scams, the FT reported.

The Autoriteit Financiële Markten, the Dutch watchdog, also warned that bad actors may see an opportunity to scam investors who are looking for an alternative licensed provider, per the report.

The European Securities and Markets Authority (ESMA), the bloc's primary markets regulator, also reportedly said that it was aware of fraudulent activities that exploited ESMA's logo to promote scams.

MiCA comes into force

MiCA took full effect on July 1 after its final transition period came to an end, bringing crypto firms under a comprehensive regulatory framework.

Roughly 320 entities have obtained MiCA licenses, according to a list updated on Aug. 5 by the European Securities and Markets Authority. FT reported last month, citing VASPnet estimates, that more than 1,700 would have to cease operations.

Among the most notable cases is Binance, which has failed to secure a MiCA license and missed the July 1 deadline.