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 then files a fraudulent complaint with their bank to recall the transferred…
