Government of Uruguay Presents Campaign Against Crypto Scams

The Department of the Interior of Uruguay is taking steps to warn users about the danger they face when investing in certain crypto projects that could be scams. The campaign is called “Fake Coins: Cryptocurrency Scams” and seeks to educate the population about the most common kinds of crypto scams.

Uruguay Educates on Crypto-Related Scams

More and more government bodies are becoming aware of how some parties are using crypto to execute different kinds of scams, and also more of these institutions are working to educate citizens on this fact. The Ministry of the Interior of Uruguay has warned about this, presenting a new campaign called “Fake Coins: Cryptocurrency Scams,” launched in partnership with El Paccto and Cibel@, two EU-Latam joint organizations that fight against organized crime.

According to the Fake Coins document:

[The project seeks to] raise awareness about the main scams detected in cryptocurrency operations. In this way, citizens will be able to identify how they are produced and what tricks the fraudsters use.

The campaign has participation from police departments and prosecutions from 17 different countries, including Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, Guatemala, Honduras, México, Panama, Paraguay, Peru, Portugal, Dominican Republic, and Uruguay.

Cryptocurrency Scam Warning Signs and Regulation

The project uses several cryptocurrency projects and fake token names which the organization has defined as scams to show the Latam audience how a crypto scam is different from legit cryptocurrency projects. Also, the campaign typifies these scams into different kinds, depending on their focus. Among these are scams through simulation or impersonation, scams through seduction, pyramid recruitment scams, and false e-mail promotions.

The problem of cryptocurrency scams in Latam has grown significantly with the popularization of crypto in countries like Argentina, Brazil, and Venezuela. In fact, this kind of scam has been mentioned as one of the factors that have accelerated the establishment of cryptocurrency regulations in some of these jurisdictions.

In Brazil, where a number of citizens have been affected by such occurrences, the newly passed crypto law modifies the penal code to include crypto crimes. The crimes are denominated as “fraud in the provision of services of virtual assets, securities, or financial assets,” with penalties including imprisonment from two to six years plus fines.

The Ministry of Uruguay advises visiting the web page of the project for more information in this regard and to report any cryptocurrency project suspected of being a scam.

Tags in this story

What do you think about Uruguay’s warning regarding cryptocurrency scams? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Source:Bitcoin.com