Bahrain Cracks Down on Cryptocurrency Fraud

Warning Issued Against Unlicensed Entities

The Central Bank of Bahrain has issued a stern warning to consumers against dealing with unlicensed entities that market investments in the country through social media. This move comes after a suspected fraudulent institution, posing as “bahrain.bitcoin” on Instagram, claimed to be licensed by the bank as a cryptocurrency trading platform.

Scam Alert: Entity Not Authorized to Operate

Officials have revealed that this entity is not authorized to operate in the Kingdom of Bahrain and is, in fact, a scam. The Central Bank emphasized that any activity promoting financial services to residents must comply with the country’s regulatory framework outlined in the Central Bank of Bahrain and Financial Institutions Law of 2006.

Precautions for Consumers

To avoid falling victim to such scams, consumers are urged to exercise extreme caution when investing or trading online, especially on social media platforms. The bank stresses that individuals should only deal with institutions that hold the necessary licenses from the Central Bank of Bahrain. Here are some key precautions:

• Verify Licenses: Check the register of licensed entities on the CBB’s website (www.cbb.gov.bh) to ensure the authenticity of financial institutions.
• Be Vigilant: Be cautious when dealing with online financial services, and never invest in unlicensed or suspicious platforms.
• Check for Red Flags: Look out for red flags such as unrealistic returns, lack of transparency, or unprofessional communication.

Protect Yourself Against Fraudulent Activities

The warning serves as a reminder of the importance of being vigilant when dealing with online financial services. By taking these precautions and verifying the authenticity of institutions, consumers can protect themselves against fraudulent activities and ensure that investments are made safely.