The Finance Ministry of Saudi Arabia has issued warning against fraudulent crypto traders who are using the country’s national emblem for the promotion of tokens related to fake government-based projects. As reported by Arab News recently, a Singapore-based cryptocurrency company has been advertising two fake cryptocurrencies by the name of CryptoRiyal and SmartRiyal.
Wolf in Sheep’s Clothing
CryptoRiyal and SmartRiyal have been promoting themselves as NEOM’s official financier. NEOM is a smart city project currently underway in the northern region of Saudi Arabia. An official statement issued from the Ministry stated that the use of the name of the Kingdom of Saudi Arabia, the national fiat currency or the national emblem for fraudulent cryptocurrency projects would be deemed a national offense and held accountable under the law of court.
Cryptocurrency analyst, Dr. Assad Rizq, stated in an interview that various illegal cryptocurrency firms are unregulated and without any assets. The firms are solely dependent on advertising and promotion of their fraudulent currencies to lure investors in. The price of the digital currency increases by the number of investors pitching in. Novice investors fall prey to these methods and jump in on the bandwagon spiking the price of the currency even higher. The owners then sell and cash in a lot of money.
Dr. Assad Rizq advised that investors should be mindful of the projects they are investing in for which research and analysis of the digital sector and the laws and proceedings of the country is extremely essential. In other news, the kingdom of Saudi Arabia is reportedly developing a cryptocurrency project in alliance with the United Arab Emirates. The bilateral digital asset would be an interbank asset, Aber. The project would aim to explore the digital aspect of cryptocurrencies and would also help cut down remittance costs and initiate cross border payments between the two nations.