In the short period of time that crypto has gone from a lesser-known niche to an era of growing popularity and adoption, instances of crypto-related fraud continue to make headlines. To counter the risks that come with crypto trading, the UAE government has been very proactive in working with key private sector players to bring safety and transparency into the crypto space.
Speaking at a webinar hosted by CoinTelegraph ahead of the Future Blockchain Summit taking place in Dubai from October 17-20, 2021, Exp Tarek Mohammed, Head of the Virtual Asset Crime Section, Dubai Police HQ and Ola Doudin, CEO and co-founder of BitOasis, the UAE’s first and largest crypto asset exchange, addressed some of the most pressing concerns around safety in crypto.
Exp Tarek M. commented, “The UAE is not only on its way to becoming a crypto hub within the region, but it is also taking a hands-on approach to ensuring the financial security of the country, investors and all stakeholders operating within the crypto space.”
Ola Doudin added to this, “The crypto space cannot grow, and the growth cannot be sustainable if we don’t have regulation. We have been working with key policymakers to help them build regulation that will make crypto safe for investors. We are extremely lucky in that regard, because the UAE leadership’s stance towards crypto and blockchain technology has been very progressive.”
Under the supervision of Exp Tarek Mohammed, all members of the Virtual Asset Crime Section of Dubai Police are undergoing extensive training to understand how the crypto and blockchain technology works. In a recently concluded panel discussion organised by Dubai Police’s General Department of Criminal Investigation (CID), BitOasis has participated in discussing the future of cryptocurrency in the UAE and how it’s working closely with Dubai Police HQ and law enforcement agencies to address the associated security risks. The ultimate objective is to evolve effective investigation methodologies to combat the risks associated with crypto trading.
Expanding on how BitOasis is strategically partnering with Dubai Police HQ, Ola said, “There’s a string of scams happening on P2P platforms, and we are actively working with Dubai Police to educate investors and traders on the risks and how they can steer clear of them.”
On the topic of unlicensed peer-to-peer exchanges becoming a haven for money laundering, Exp Tarek M. said, “Crypto investors should be wary of accepting payment in Dirhams from an anonymous source, in exchange for cryptocurrency. With a significant chance that this payment may have come from the proceeds of crimes such as drug trafficking, human trafficking or other illicit activities, investors may unknowingly become complicit in the crime.”
When asked about how some global exchanges are expanding and scaling too fast without any regulation holding them back, Ola said, “Regulation will come sooner or later. The question is, do you have a sustainable relationship with regulators, and are you willing to walk together with them, before you can run. Ultimately, we are dealing with people’s money, so it is hugely important for us as a company to build trust into our platform and the wider ecosystem.”