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.

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