Fake ‘Legal Exchange’ Scams Surge After MiCA Rollout, Warns CoinDesk

The European Union’s Markets in Crypto-Assets regulation (MiCA) came into full effect in July, reshaping the crypto landscape across the bloc. But the transition has also opened a new front for fraudsters. According to a report by CoinDesk, scammers are exploiting the migration of users from unlicensed platforms by posing as ‘legal exchanges’ and regulators, luring victims to fake websites and stealing their funds.

How the MiCA Transition Created an Opening for Scammers

MiCA’s implementation forced more than 1,700 unlicensed crypto platforms to halt services for EU customers. These platforms were required to direct users to migrate their assets to MiCA-compliant alternatives. At the time of the transition, only 323 firms held the necessary licenses, leaving as many as 10 million users in a vulnerable position.

The sudden and large-scale migration created a perfect environment for impersonation scams. Fraudsters copied official migration notices from legitimate exchanges and posed as regulators, sending emails or messages that appeared authentic. Victims were directed to fake platforms that mimicked the look and feel of real exchanges, where they were prompted to enter credentials or transfer funds—which were then stolen.