The Ministry of Interior of Uruguay is taking steps to warn users of the danger they face when investing in certain crypto projects that could be scams. The campaign is called “Fake Coins: Cryptocurrency Scams” and aims to educate the public about the most common types of crypto scams.
Uruguay updates on crypto-related scams
More and more government agencies are becoming aware of how some parties are using crypto to carry out various types of scams, and more and more of these institutions are working to educate citizens about this fact. The Ministry of Interior of Uruguay has warned and introduces a new campaign entitled “Fake Coins: Cryptocurrency Scams”, launched in partnership with El Paccto and [email protected], two joint EU-Latam organizations dedicated to fighting organized crime.
According to the Fake Coins document:
[The project seeks to] Raising awareness of the top scams discovered in cryptocurrency operations. This allows citizens to see how they are made and what tricks scammers use.
The campaign involves police departments and prosecutors from 17 different countries, including Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, Portugal, Dominican Republic, and Uruguay.
Cryptocurrency fraud warning signs and regulations
The project uses multiple cryptocurrency projects and fake token names, which the organization has defined as a scam, to show the Latin American audience how a crypto scam differs from legitimate cryptocurrency projects. Also, the campaign breaks down these scams into different types depending on their focus. These include scams through simulation or imitation, scams through seduction, pyramid recruitment scams, and false email promotions.
The problem of cryptocurrency fraud in Latam has increased significantly with the popularization of crypto in countries like Argentina, Brazil, and Venezuela. In fact, this type of fraud has been mentioned as one of the factors that accelerated the adoption of cryptocurrency regulations in some of these jurisdictions.
In Brazil, where a number of citizens have been affected by such incidents, the newly passed crypto law amends the penal code to include crypto crimes. The offenses are described as “fraud in the provision of services related to virtual assets, securities or financial assets” and are punishable by prison sentences of two to six years plus fines.
The Ministry of Uruguay recommends visiting the project’s website for more information on this and to report any cryptocurrency project suspected of being a scam.
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