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Cryptocurrency scams still lurk for investors

Cape Town – There are many cryptocurrency exchanges across the world, according to Marius Reitz, of cryptocurrency exchange company Luno.

Many of these are scams. Customers need to trust that the exchange they use has verified the track records of the cryptocurrencies available on their platforms.

The same intuitive rules that apply to traditional money also apply to bitcoin. For example, dont invest more than you can afford to lose and dont put all your eggs in one basket, said Reitz.

To be clear, bitcoin itself is not a scam. Criminals tend to scam people out of their hard-earned money by using a combination of techniques, which may include SMS scams asking customers to verify their credentials within a certain time frame, or via phishing emails in which they pretend to work for a crypto company requesting a customer to click on a link to complete a transaction or verify information.

We believe regulation will provide consumers with the comfort that the service they are dealing with is held to defined regulatory standards.

The SA Reserve Bank has taken a progressive approach to the regulation of cryptocurrencies, specifically clamping down on unscrupulous use. It is expected to announce new crypto policy proposals in 2020, added Reitz.

For example, sometimes criminals will call customers pretending to work for a crypto company and follow the same routine trying to extract sensitive customer information.

There are also instances of people offering to trade crypto on your behalf while promising inflated returns on your investment.

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