The EU's Markets in Crypto-Assets (MiCA) framework took full effect on July 1, requiring unauthorized crypto asset service providers to cease EU operations, which has prompted a surge in scam warnings as more than 1,000 firms lacking MiCA authorization were identified.

The European Securities and Markets Authority (ESMA) published a register in late July listing 323 authorized providers, while data firm VASPnet estimated over 1,700 firms were unlicensed; a separate TRM Labs analysis counted 1,343 EEA providers, of which 281 held MiCA licences and 1,062 did not.

Regulators warned that fraudsters are mimicking official migration notices, using the ESMA logo, counterfeit documents and fake websites to persuade users to transfer assets to illegitimate platforms; national authorities such as France's AMF, the Dutch AFM and Austria's FMA have issued alerts and advised customers to verify providers against the ESMA register before moving funds.

ESMA rules require unlicensed providers to stop onboarding new EU clients and limit activity to an orderly wind-down, allowing only the services needed to settle positions and close accounts, while custody may continue only as long as necessary; customers are urged to check the legal entity behind a brand, as authorisation does not automatically extend to all subsidiaries, and to use self‑hosted wallets or transfer assets to licensed providers.

The regulator reiterated that it will never request personal information or fees to recover funds, and enforcement will focus on monitoring the timely exit of unauthorized providers, with coordinated action possible across member states; the risk of phishing and fraud remains as genuine providers continue to issue withdrawal and transfer notices.