Central Bank of Samoa Issues Warning Against Digital Currency Scams

The Central Bank of Samoa (CBS) has issued a statement warning citizens about the increasing volume of scams associated with digital currency investments infiltrating the country. In the statement, the CBS requests that Samoan citizens remain extra cautious of digital currency investments and that they contact the CBS immediately if they experience any doubt about a digital currency investment opportunity. As per the statement:

“We wish to advise the general public to be very cautious and diligent in dealing with get-rich-quick schemes or digital currency investments.  It has been brought to our attention that a lot of get-rich-quick schemes and digital currency investment opportunities are being spread around the country through presentations and through social media – i.e. facebook!  Please be aware and extra cautious of these investments.  Please contact the Central Bank of Samoa if you are not quite sure about these types of investments.”

However, Samoa isn’t the first to come down on digital currency investment scams. The ever growing interest and bloated market caps within the digital currency market have created the opportunity for clever con artists to prey on the hopes of naïve investors looking for shortcuts to fortunes. As a result, central banks worldwide have started taking the appropriate measures to warn the public about the dangers of illegitimate digital currency investment scams.

In May, The Bolivian Supervisory Authority of the Financial System detained 60 cryptocurrency promoters for distributing training pamphlets related to their use. Moreover, the Bolivian authorities encouraged the population to resist participating in closed group digital currency ventures on WhatsApp. Similarly, in May 2017, the Central Bank of Hungary, Magyar Nemzeti Bank, announced the formulation of a cryptocurrency task force in order to take down the suspected scam, OneCoin.

Yet, the fact that countries are issuing warnings against digital currency use isn’t necessarily the beginning of the end for the emerging technology, as exemplified by India. After issuing repeated warnings on the authenticity of digital currencies, the Indian government established a diverse group of representatives from a number of government agencies, such as the Reserve Bank of India, State Bank of India, and the NITI Aayog think-tank, in order to examine their use in the country. Subsequently, in May 2017, the Indian Ministry of Finance opened the floor to the public for comments and suggestions relating to the integration of digital currencies. When steps like these are taken by governments that are leery about crypto, they can lead to appropriate regulations and a more pleasant relationship with digital currencies in the future.