Dubai’s financial watchdog has warned the public about a fraudulent crypto project that claims to be based in the city. In a advisory seen by Khaleej’s time, the Dubai Financial Services Authority (DFSA) revealed that the company is the clone of Melicoin, a company registered to operate in Dubai but in a different industry.

MeleCoin claims to be involved in banking, investing, and e-commerce on its website. It promises users a simple and transparent bridge between traditional finance and digital finance, claiming to rely on blockchain technology to achieve this. Additionally, the company claims to target more than just the financial services industry, including retail, e-commerce, tourism, etc.

However, this is nothing more than an elaborate scheme, the DFSA has revealed. On the one hand, the company claims to be located at Lepery House in the Dubai International Financial Center, a building that does not exist.

More importantly, the DFSA did not allow the company to offer its services in Dubai. Part of the notice read: “The DFSA informs you that MeleCoin is not and has never been licensed or authorized by the DFSA; and / or incorporated or registered by the DIFC Companies Registrar. “

The company is said to be a clone of Melicoin, a company that the DFSA has licensed to operate. However, other than the name, the two companies have nothing in common as Melicoin invests in oil and natural gas, agriculture, and healthcare.

MeleCoin hoped to capitalize on the growing popularity of crypto and blockchain technology in the UAE. Already, the UAE has pledged to move at least half of its functions to blockchain by 2021. And as CoinGeek reported, the UAE has taken the lead in most token sales. this year, disrupting traditional powers such as the United States and Japan.

MeleCoin also highlights the growing number of clone businesses looking to trick people into masquerading as legitimate businesses. The UK’s Financial Conduct Authority (FCA) has been at the forefront of exposing these companies, regularly issuing warnings to the public about the latest scams.

New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.