Experts in cryptocurrency trading have provided "Al-Ittihad" with several tips and principles for the correct handling of cryptocurrencies, especially when choosing an investment platform. These tips came after the renewed warning from the Dubai Cybersecurity Center regarding a site promoting the digital currency "Dubai Coin," raising concerns about dealing with cryptocurrencies in general, particularly after the decision to close that unlicensed site.
The Dubai Cybersecurity Center issued a warning, according to a tweet published by the Dubai Media Office, regarding the "Dubai Coin" digital currency, which has not been officially recognized in the Emirates. The center confirmed that Dubai does not currently have any digital currency bearing its name in the country, emphasizing that the site promoting Dubai Coin is "unlicensed and targets phishing for personal information such as email, passwords, and phone numbers through an online form." Consequently, the unlicensed website promoting the "Dubai Coin" digital currency has been shut down, amid warnings against falling into traps that compromise users' data privacy, potentially leading to financial losses without a regulatory body to turn to.
**Neil Bennington - Transparency and Security**
Dr. Neil Bennington, Senior Strategy and Innovation Consultant at "Aidonious," stated that when choosing a trading platform, individuals need to be diligent and cautious, avoiding the rush to switch to the next platform merely because it offers a cryptocurrency. He noted that while investors should put in the effort to select a trading platform and be responsible for their decisions, the platform should also clearly outline its policies and whether it complies with regulations and laws. He emphasized that regulatory and supervisory authorities play a crucial role in its licensing system and in taking strict action against fraud.
Bennington urged investors, when choosing a platform for investing, trading, or storing cryptocurrencies, to consider security and reputation. He suggested questions like "Does this platform have a visible and reliable management team?" and "What are the 'Know Your Customer' and 'Anti-Money Laundering' policies it follows?" He pointed out that, for example, "Aidonious" clearly adheres to Swiss financial regulations, which require users to register using a "Know Your Customer" form and specifies the management team on its website for transparency, asserting that transparency and security are essential for individuals with high standards.
**Dina Samhan - License Verification**
For her part, Dina Samhan, founder and general manager of "CoinMena," stated that if a cryptocurrency trading platform claims to be licensed by a central bank or certain authority, it is crucial to verify this through the official website of the central bank or authority to check if the company is listed in the licensing registry. Additionally, one can check the company's commercial registry to verify its regulatory status, highlighting that the "CoinMena" trading platform is fully licensed by the Central Bank of Bahrain and compliant with Islamic law, offering a wide range of leading and secure cryptocurrencies in the region.
Samhan advised investors to choose platforms that are regulated and possess strong cybersecurity infrastructure, in addition to separating client funds from company funds, ensuring adequate coverage for clients' funds, while offering competitive prices and allowing local currency deposits and withdrawals.
**Ola Johannes Lind - Research and Due Diligence**
Ola Johannes Lind, Director of "SoBitX," stated that the responsibility for due diligence on the chosen platform lies with the individual, who should contact the platform's customer service to request a copy of the license to determine if it is licensed and secure. He noted that there is currently no legal license for platforms for investing in cryptocurrencies in the UAE and confirmed that existing platforms are eagerly awaiting approval from the UAE government and the Central Bank of the UAE for licensing. Until that is achieved, licenses like the ones they have from Europe are being utilized.
Lind outlined the necessary steps for selecting a cryptocurrency trading platform, mentioning that the first step is to verify the license, the platform's records, and its personnel. He stated it is unsafe to transfer digital assets to an unknown trading platform or to an unstable or unlicensed technical platform. He advised ensuring that assets, if not being traded, are stored in a secure (cold) wallet for the exchange; otherwise, the assets may be at risk. He concluded by stressing the importance of conducting extensive research into the jurisdiction and licensing under which the platform operates, ensuring they have all the active security protocols in place to safeguard their clients.
