Dubai Aims To Regulate Cryptocurrencies As Fraud Cases Are On The Rise

News from Dubai media report that the police are investigating a case of cryptocurrency fraud of Dh300 million ($8.17 million USD). Fraud has been one common problem in the field of cryptocurrency and this recent case has seen the push of getting regulation on the industry increase significantly.

Cryptocurrency Regulation In UAE

In a panel discussion on digital currencies, the deputy chairman of the Dubai Police and head of general security in Dubai, Lt- Gen Dhahi Khalfan Tamim noted the difficulty of the government in protecting investors from fraud and theft in the digital currency world. Furthermore, the deputy chairman remarked on the lack of regulation on the currencies in the world over has stifled the global adoption of the crypto due to lack of public awareness and insufficient crime prevention tactics.

Speaking to the Times, Tamim said, “…Faith in digital currencies will always be questioned as long as its source and tracking system remain unknown,”

In the Middle East, United Arab Emirates (UAE) has been on the forefront in its progressive stance on adoption of blockchain technologies and related cryptocurrencies. With the highly-publicized Emirates Blockchain Strategy and state-level interest strongly in place in the country senior figures at the conference raised the possibility of UAE releasing a ‘digital UAE cryptocurrency using blockchain technology.’

Failure In Cryptocurrency Projects

Speaking in the panel, the chairman of Dubai SmartWorld, a digital smart services provider noted threat most of the projects being built are scam and end up failing less than a year after launch.

About 56% of these company projects are shut down after investors realize they are scam of fake. Furthermore Dr. Saeed said that of every successful digital currency in the market, there lies five failed ones.

The high fail rate has prompted UAE lawmakers to look at the possibility to adopt formal regulations pertaining to both fintech and ICOs according to reports from the media outlets in Dubai.