Malta Regulator Flags Surge in Crypto Scams Exploiting MiCA Transition

The Malta Financial Services Authority has warned consumers about an increase in fraudulent schemes targeting crypto-asset holders during the European Union's transition to the Markets in Crypto-Assets Regulation.

In an earlier review, ESMA said the MFSA had adequate resources and expertise but identified areas where it could strengthen its authorisation process for crypto firms. The MiCA transition period has created uncertainty that the MFSA said fraudsters are exploiting.

Fraudsters Mimic Regulators to Steal Crypto

According to the regulator, it has received reports from across the European Union of fraudsters impersonating crypto-asset service providers, financial regulators, and supervisory authorities. The scams are intended to persuade consumers to transfer their crypto-assets to accounts controlled by criminals.

The MFSA said fraudsters may contact consumers through email, telephone calls, messaging applications, social media platforms, or fake websites designed to resemble those of legitimate organisations.

The regulator said scammers have falsely claimed to represent national regulators or European supervisory authorities. They have also used forged documents, fraudulent correspondence, and copied branding to make their communications appear genuine.

EU 🇪🇺 regulators are warning of a surge in crypto scams as fraudsters exploit MiCA-related exchange shutdowns. ⚠️Scammers are impersonating crypto exchanges and regulators, urging users to "transfer" assets to fake wallets and websites.Only 323 firms have secured MiCA… pic.twitter.com/E4WAlN9ewz

Urgency Tactics Drive Crypto Transfer Scams

According to the MFSA, fraudsters have told consumers that their crypto-asset service provider is no longer authorised or licensed. They then encourage customers to withdraw or transfer their crypto-assets to accounts presented as "safe" or "regulated." The scams also rely on creating a false sense of urgency to pressure consumers into acting quickly.

The regulator warned that transfers made to such accounts could result in the permanent loss of crypto-assets.

During the transition period, some firms may stop operating, restructure their businesses, or migrate customers to licensed entities.

The MFSA said this period of change may create uncertainty that fraudsters can exploit through deceptive communications and impersonation schemes. It urged consumers to remain cautious when receiving unexpected requests involving their crypto-assets, particularly if they are asked to transfer funds or act immediately.