The UAE’s understanding of cryptocurrencies and blockchain technology’s massive potential has grown progressively more obvious. The UAE is destined to become a strategically connected state and a dynamic commercial hub. The increased capacity to purchase real-world things with cryptocurrencies is one of the implications of Dubai to regulating virtual currency transactions. Several cafes and restaurants in the UAE have begun accepting cryptocurrency for simple purchases like a cup of coffee.
The UAE is seeing a surge in cryptocurrency frauds, a drawback of the digital currency industry’s explosive expansion. Hackers target cryptocurrency exchanges and digital wallets with advanced tools and methods. Today, crypto traders in the Middle East need more information to be protected against crypto scams and frauds. Dubai Police is collaborating with BitOasis to ensure the safety of cryptocurrency investors.
Dealing With Crypto Assets In The UAE Comes With Risks
The use of cryptocurrencies has drawn the attention of many UAE government entities. Despite regulatory attempts to secure crypto transfers, fraud still happens in these transactions. UAE citizens have received many alerts from the Securities and Commodities Authority on virtual currency scams. Transactions with cryptocurrency are hazardous since they might be fraudulent due to online anonymity. A total of 80 million AED have been lost to crypto scams in Dubai in the past few years, according to Tarek Mohammed at the Dubai Police.
Also read : A Dramatic Drop in Crypto Scams: Inexperienced Investors Flee the Market, Resulting in Frauds Plummet
A Variety Of Methods Are Used To Perpetrate Crypto Scams
In cryptocurrency fraud, various methods and techniques are used, such as fraudulent transfer recall, peer-to-peer exchanges using funds obtained illegally, involving a third party, and scamming by offering giveaways. Sometimes, the fraudster offers to purchase cryptocurrencies with a bank cheque at a favorable price. However, in reality, the cheque turns out to be a rubber check which gets rejected in the end. Another popular way of crypto scamming is by connecting with sellers and buyers. A scammer targets traders and investors to present them with a profitable bargain while pretending to be a broker. Usually, giveaway scams appear on trustworthy websites where they trick people. A victim’s public address and private key are asked for in exchange for free crypto assets.
Scams Involving Crypto Transactions In UAE: How To Avoid Them
Investors should consider common safety measures when trading cryptocurrency assets in the UAE. It is crucial to remember that sharing personal data to unknown addresses is strictly prohibited. The scammers can target you through ominous calls, texts, and advertisements that sometimes seem to be from legitimate businesses. So, ignore any text, giveaway, or call that you think is suspicious. Investors are advised to carry out all their crypto transactions through platforms having regulatory approval and are under the control of the UAE’s financial authority. UAE is adopting a proactive approach to protecting people from illegal cryptocurrency operations by spreading awareness about shady cryptocurrencies and how to avoid illegal deals.
