EU crypto licensing crackdown fuels scams, regulators say

The European Union’s new Markets in Crypto‑Assets (MiCA) regime required crypto‑asset service providers to obtain an EU‑wide licence by 1 July. Hundreds of firms failed to secure a licence, rendering them illegal and prompting them to advise customers to withdraw or move assets.

Scammers are exploiting the resulting confusion, forging documents and misusing the logos of supervisory bodies such as the European Securities and Markets Authority (ESMA) and the French Autorité des Marchés Financiers (AMF). Stéphane Pontoizeau, executive director at the AMF, warned that “this period is an opportunity for fraudsters more than usual.”

According to ESMA, only 323 crypto firms have been granted licences, while more than 1 700 unlicensed firms are expected to cease operations. Major exchanges Coinbase, Kraken and OKX have obtained licences; Binance remains the largest platform still outside EU supervision. Global losses from crypto‑related fraud reached $17 billion last year, up from $6 billion five years earlier.