EU regulators warn of crypto scams exploiting MiCA licenses

EU financial regulators warned investors to watch for a rise in cryptocurrency scams exploiting the bloc’s MiCA licensing regime, the Financial Times reported. According to the FT, fraudsters have been targeting users of crypto firms that ended services or withdrew under MiCA by posing as financial authorities or duly licensed companies. The scammers have been circulating fake notices and phishing sites claiming users must transfer assets to an approved account or complete urgent KYC verification. The EU halted the operations of crypto firms that failed to obtain licenses after the MiCA transition grace period ended on July 1. Regulators stressed that scams are spreading around user asset transfer procedures during that process and said investors should verify whether any guidance is official.