EU MiCA transition fuels crypto impersonation scams

The European Union's Markets in Crypto-Assets (MiCA) regulation took full effect on July 1, 2026, requiring all crypto-asset service providers (CASPs) serving EU customers to obtain authorization. This forced more than 1,700 unlicensed platforms to cease operations or transfer customers, while only 323 firms had secured MiCA authorization by the end of July. The mass migration of users and assets created a fertile ground for fraudsters, who impersonated regulators and licensed exchanges to deceive investors. Regulators across Europe, including ESMA, France's AMF, the Dutch AFM, Austria's FMA, and Belgium's FSMA, reported a rise in impersonation scams. Scammers used fake websites, forged documents, and official-looking branding to trick users into transferring funds or revealing sensitive information. The transition also saw Binance lose its MiCA license and exit the EU market, while Hungary repealed its national validator requirement and CoinCash became the first Hungarian firm to receive direct MiCA authorization. The Council of the European Union adopted sanctions preventing Belarusian nationals from controlling MiCA-authorized CASPs. Chainalysis predicted that crypto scams generated around $17 billion in illegal revenue in 2025, and WhiteBIT found that nearly 41% of crypto incidents in 2025 involved deception. Regulators urged investors to verify providers through official registers and to be wary of unsolicited requests to move funds.