With the full entry into force on 1 July of the EU Act on the Regulation of Encrypted Assets Markets, a large number of unauthorized platforms withdrew from the EU market. There has been a marked increase in the number of frauds committed by regulators and licensed exchanges in the course of the centralized transfer of accounts and assets by users.
Over a thousand platforms stopped serving.
It was reported that at the time of full implementation of the MiCA, over 1700 unlicensed encryption platforms had been asked to stop providing services to EU clients and to direct users to compliance platforms. There were only 323 companies that actually had valid MiCA authorizations.
This means that a large number of users need to re-select service providers and move digital assets within a short period of time. It is mentioned that the maximum number of affected users is 10 million, which also creates a centralized window for fraudsters.
Regulatory identity is frequently fraudulently used
AMF indicated that fraudsters had been impersonating employees of the institution to assist in the recovery of stolen funds, requiring victims to pay administrative costs first. ESMA ESMA also confirmed that its name, logo and documents were being misappropriated by outlaws.
The Netherlands Financial Markets Authority AFM stated that the process of relocation after the exit of unregulated exchanges was itself an attack. The Austrian Financial Markets Authority has recently issued a similar warning to users to verify whether the platform remains legitimate before transferring assets.
It's common practice to push a transfer.
Reports indicate that fraudsters often copy the language of a real platform's relocation notice, create a sense of urgency, induce users to transfer assets to a false platform or require them to operate as soon as possible on the ground of “funds at risk”. In some cases, victims are also directed to install screen-sharing software to facilitate the completion of false accounts or transfers.
The British Financial Conduct Regulatory Authority FCA indicated that 4465 fraud reports had been recorded in the first half of 2025, in which 480 victims had transferred funds. It is common to say that the fraudster claims that the regulator has recovered the assets from an illegally opened wallet for the user, and then continues to claim operational rights or transfers.
Checking the list is a key step.
Many regulators stressed that true regulators would not require individual transfers or contact their clients through private information to deal with financial issues. AFM recommends that users check the ESMA official directory and the national regulatory authority's registration before transferring assets.
It was also mentioned that investor protection in MiCA only applies to users who receive services from EU compliance entities. Even if the group belonging to a platform holds a licence in other areas, this does not mean that all its subsidiaries are automatically covered by the MiCA protection.