CBB issues warning over ‘fraud’ cryptocurrency trading platform

A fraudulent organisation is targeting the Kingdom’s citizens and residents in an attempt to sell cryptocurrency.

A fraud institution under the name ‘bahrain.bitcoin’ claims to have been licensed by the Central Bank of Bahrain (CBB) as a cryptocurrency trading platform, which was yesterday denied by the CBB.

“The CBB wishes to emphasise that the above-mentioned entity is not licensed by the CBB and that the activity of promoting financial services to residents in the Kingdom falls within the scope of regulated financial services in accordance with the CBB and Financial Institutions Law of 2006,” the CBB stated in a statement issued.

The CBB also stressed the need for consumers to ensure the utmost care and caution, and take into consideration the risks, when investing, dealing or trading any amounts with any person, persons, institutions, companies or websites, including social media, and ensuring that they hold the necessary licenses from the Central Bank of Bahrain to engage in such activities.

“Consumers are encouraged to visit the register of licensed financial institutions on CBB’s website to verify the authenticity of such institutions.”

Recently, the public were being warned that SMS messages being sent to them by fraudsters imitating the authorities.

Text messages were sent to citizens and residents by fraudsters who are claiming to be Bahraini security authorities.

The fraudsters are sending messages to the public about bank transactions claiming to be from the Crime Investigation Department.

The Ministry of Interior has warned the public to exercise alertness and not be scammed by such fraudsters.

  Tribune recently reported about an unlicensed financial institution that has been cheating customers in the name of marketing investments in securities in the Kingdom.

The CBB issued the warning as a result of unlicensed activities by the institution under the name of “United Investment Bank”, which provides asset management, brokerage and investment banking services. 

The so-called bank claims to be a multi-award winning financial services company located in the Kingdom, which provides its clients with a range of diverse, innovative and Shariah compliant financial products and services.

Tribune found that the bank was allegedly operating under a different name in Saudi Arabia.

However, no contact numbers were available for the bank in Bahrain as well as Saudi Arabia.

Meanwhile, there were no social media accounts associated with the institution.

  “Capitalising on the worldclass experience and through the expertise of its investment teams, the United Investment Bank is a market leader in the delivery of bespoke financial and investment solutions, which address the ever-changing needs of clients, institutional customers and high-networth individuals,” the institution states on its website.

The website even lists a commercial registration number in Saudi Arabia while mentioning itself as a closed joint stock company.

The CBB emphasised that the entity was not licensed by it and that the activity of promoting financial services to residents in the Kingdom falls within the scope of regulated financial services in accordance with the Central Bank of Bahrain and Financial Institutions Law of 2006.