Fraudsters are seizing on the disruption created by the EU’s new crypto rules, seeking to steal money from customers by impersonating both crypto companies and their regulators. Regulators say the period after the July 1 deadline has opened a window for scams, as unlicensed firms are now illegal and customers are urged to withdraw or transfer assets, exposing them to fraud.

Only 323 crypto companies have secured licences under the Markets in Crypto‑Assets Regulation, while data provider VASPnet estimates that 1,700 unlicensed firms would have to cease operations. Big names such as Coinbase, Kraken and OKX have been licensed, whereas Binance remains the most high‑profile unregulated venue. ESMA warned of fraudulent use of its logo and falsified documents.

Global losses to crypto scams rose to 17bn last year, up from 6bn five years earlier, according to Chainalysis. Impersonation fraud is among the fastest‑growing types. Regulators advise customers not to transfer funds to unfamiliar sites and to verify the authenticity of any “regulator” contact.

By staying vigilant and checking official sources before moving assets, users can reduce the risk of falling into these schemes.