EU regulators warn of crypto scams exploiting MiCA licenses

EU financial regulators warned investors of an increase in cryptocurrency scams taking advantage of the MiCA licensing regime. Fraudsters are targeting users of crypto firms that ceased operations or withdrew under MiCA by impersonating financial authorities or licensed companies. Scammers are distributing fake notices and phishing sites, claiming users must transfer assets to approved accounts or complete urgent KYC verification. The EU halted operations of crypto firms that did not obtain licenses after the MiCA transition grace period ended on July 1. Regulators emphasized that scams are proliferating around user asset transfer procedures and advised investors to verify the authenticity of any guidance.