More than ever, crypto-investors in UAE need awareness and
defense against scams. Michael Kortbawi speaks to Gulf News on how
to avoid crypto-scams.
It has become clear that the UAE has recognised the tremendous
potential of cryptocurrency and blockchain technologies, and is set
to be a hyper-connected city as well as an ever-evolving business
hub. One of the outcomes of Dubai’s will to become a global
centre for crypto assets is the establishment of the largest crypto
exchange platforms.
For instance, Binance, the world’s leading cryptocurrency
trading platform, was granted a licence to operate in Dubai, and in
April 2022, Bybit and crypto.com announced their establishment
here. Moreover, Dubai has enacted a new law aimed at establishing
the emirate as an international centre for crypto assets and
related industries, such as the metaverse, and creating the Dubai
Virtual Assets Regulatory Authority to oversee the regulation,
governance, and licensing of virtual assets.
Unfortunately, the downside of the exponential growth of crypto
industry is the increase of crypto scams in the UAE. According to
the Head of the Digital Assets Crime Section at the Dubai Police,
in the first half of 2021, there were hundreds of crypto scams in
Dubai with Dh80 million lost in total.
Crypto scams occur using diverse means, as outlined below:
Transfer recall scam: The scammer buys
cryptocurrencies and sends funds to the seller and they receive the
tokens. However, he…
