Dubai is aware of the true potential of blockchain technology and the popularity of cryptocurrencies in the region. The UAE is preparing to become a dynamic business hub and a highly-connected city soon in the future. Dubai is all set to promote itself as a global hub for digital assets, and this move has led it to welcome today one of the biggest exchange platforms for cryptocurrency- Binance.
Kavan Choksi– an insight into the most popular cryptocurrency platform in the world
According to an expert in finance, business, and cryptocurrencies, Kavan Choksi, Binance, the globe’s most popular exchange for cryptocurrencies, received approval to start operations in Dubai in April 2022. At the same time, By bit, as well as crypto.com, have expressed their intent to start operations in the UAE soon. A new law was passed by the government in Dubai to make the Emirates a global hub for cryptocurrencies and its related fields like metaverse and to create the Dubai Virtual Assets Regulatory Authority to monitor the licenses, governance, and regulation of digital assets.
A glimpse into the exponential surge in cryptocurrencies
According to him, the exponential rise of the cryptocurrency hype does not exist without disadvantages. Though the UAE has welcomed cryptocurrencies, there has also been an increase in scams in the region related to them. According to credible sources issued by Dubai Police, there have been hundreds of cryptocurrency scans in the first six months of 2021, resulting in losses amounting to Dh80 million.
The different forms of scams pertaining to cryptocurrencies
There have been several scams linked to cryptocurrencies, and some of them have resulted in huge losses. It is prudent for users to be aware of these scams if they wish to protect their crypto coins safely. Transfer recall is a popular scam where the scammer buys the cryptocurrency and transfers the cash to the seller, who sends the tokens back. Later, he approaches their bank with a complaint that is fake to transfer the funds back to the original source.
Peer-to-peer cryptocurrency transactions with funds obtained unlawfully
Here, an individual offer to buy coins at a reasonable price; however, the funds are received via criminal proceedings that result in the victim unsuspectingly joining in the initial crime.
In the rubber check scam, the con artist makes a promise to buy cryptocurrencies with a rubber check for a reasonable price. There are scams that involve third -parties where the con artist gets a buyer and vendor. He then persuades them to meet each other in person and tells the buyer to bring cash. The scammer gives the seller money and instructs him to transfer the funds to his trading account instead of the crypto account of the buyer.
According to Kavan Choksi, the above are some of the scams that are going around in the cryptocurrency world. So, you must be aware of them to stay protected when it comes to trading or investing in them. Never enter the market if you are a beginner without knowledge. Consult financial advisors who are experts in the field to be informed and protected against scams.
