Legal: Bitcoin investment scams differ and agree on two things

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The lawyer and legal advisor, Muhammad bin Abdullah Bahamdeen, stressed the importance of not dealing with all digital currencies outside the Kingdom that claim quick and easy profits, considering that they are fake and unsafe transactions and are not subject to the oversight of any regulatory authority around the world, especially those that may be sent from one person to another. Through the Bitcoin network, he added: In light of the contemporary problems of these deceptive transactions, we received the case of a citizen who contracted with a resident to exchange Bitcoin as a for-profit financial intermediary after several determined years, and after having provided bogus guarantees through the resident, the citizen paid him 1.5 million riyals, but fell victim to fraud for these currencies.

Bahamdeen pointed out that despite the different alleged investment methods, I agree on two things, the first is the ease of investing with these scammers, and the second is the alleged guarantees of obtaining profits above normal investments, and from here it begins. their illusion with the aim of luring and seducing victims and illegally seizing their money And he added: Over the past three years, the marketing process for trading in Bitcoin markets and buying and selling currencies and metals in the global markets has spread, and some have claimed that it makes impressive profits, as capital has multiplied more than 500 times in less than a year, and all this is not true, and obviously the exploitation of Technology and its developments for the marketing, where victims were hunted through social media and websites.

He explained that the biggest risk of investing in bitcoin is that the digital currency is independent of the world’s central banks, as it has no economic base and cryptocurrencies only have a registration and trust mechanism in a computer algorithm. And now, no one can guarantee that bitcoins will be mined tomorrow, and this is an unauthorized and unsafe financial investment activity, because transactions have several negative consequences for traders and their risks are high, as they are out of scope. of the regulatory umbrella within the Kingdom, and are not considered certified currencies so are not its circulation through authorized persons other than the suspicion that its use as a means of illegal financial transactions prohibited by law.

Bahamdeen said these digital currencies are not supervised by any regulatory authority around the world, as is the case in official currencies monitored by state governments and central banks, which makes digital currencies an easy tool and a tool for trading. money laundering and illegal commercial operations, while a crime. Money laundering, the penalty of which is imprisonment of up to ten years and a fine of up to five million riyals, pursuant to article eighteen of the Anti-Money Laundering Law. Nor are there any regulatory bodies that are not recognized internationally and are not considered a tool for paying off debts to others.

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