According to officials cited by the Financial Times, fraudsters are impersonating both financial regulatory bodies and crypto businesses to prey on the customers of crypto service providers that did not successfully obtain licenses within the European Union.

A number of the bloc's watchdogs have reportedly witnessed a surge in scams since the July 1 deadline, which mandated that firms must have authorization under the Markets in Crypto-Assets (MiCA) Regulation. Companies that did not secure the required approval are obligated to either wind down their EU operations or transfer them, a situation that compels customers to relocate their assets. Criminals are said to be taking advantage of this disruption by utilizing fraudulent websites and forged documents to target individuals looking for licensed crypto providers.

Stéphane Pontoizeau, an official with France’s Autorité des Marchés Financiers (AMF), confirmed that his agency has come across incidents where con artists posed as AMF representatives. These imposters then guided users toward fake websites with the goal of having them transfer their assets.

Similarly, the European Securities and Markets Authority (ESMA) stated its awareness of scammers illicitly using its name and logo, a tactic that has included the use of falsified documents. The authority issued a warning that criminals may specifically target customers who are in the process of searching for an alternative, licensed provider for their crypto assets.

The scale of the regulatory shift is significant. An ESMA list, which was updated at the end of July, revealed that only 323 crypto companies had managed to obtain the necessary licenses. This number stands in stark contrast to an earlier projection from data provider VASPnet, which had estimated that more than 1,700 unlicensed companies would be forced to cease their operations.