Saudi Arabia’s Finance Ministry warned against crypto scammers using the official emblem to promote tokens that purport to be attached to government projects.
According to Arab News the ministry has identified a Singapore-based company promoting two fraudulent cryptocurrencies, named “CryptoRiyal” and “SmartRiyal.”
CryptoRiyal and SmartRiyal’s promoters are claiming that their cryptocurrency project’s goal is to finance NEOM. This is a smart city and tourism hub currently under construction in the north of Saudi Arabia.
The report cites an official statement from the ministry saying that any use of the Kingdom’s name, national fiat currency or emblem for cryptocurrencies will be subject to legal action from the authorities.
In an interview with Arab News, Dr. Assad Rizq who is a cryptocurrency expert said many scammers’ firms are unregulated and even copy their white paper from other projects.
“They hype and pump their project so the price goes up. Inexpert investors, afraid of missing out, jump in, which spikes the price even higher. Then the owners sell up and make tons of money.
It should be noted that Saudi Arabia is in fact involved in a project to develop a cryptocurrency together with the United Arab Emirates (UAE).
The bilaterally issued digital asset will be an interbank asset named Aber with restricted circulation.