DFSA Fraud Alert: Melecoin not located in the DIFC

Cryptocurrency Platform Melecoin falsely claims to be located in the DIFC

14 Oct 2019

The Dubai Financial Services Authority (DFSA) alerts the financial services community and members of the public about MeleCoin, which falsely claims to be located in Dubai International Financial Centre. 

On its website, MeleCoin:
• invites people to purchase “virtual currency” or “tokens” online which may be used in a number of electronic platforms and offers other cryptocurrency related products and services;
• uses the name “MeleCoin” which is similar to that of a genuine DIFC incorporated firm called Melicoin Investments Limited, a firm which does not offer any of the products or services advertised on the “MeleCoin” website; and
• claims to be located at ‘Unit 505 – Floor 5 – Lepery House, Dubai International Financial Centre’.  This address is fictitious as there is no building called “Lepery House” in the DIFC.

The DFSA informs you that “MeleCoin” is not and has never been:
• licensed or authorised by the DFSA; and/or
• incorporated or registered by the DIFC Registrar of Companies.

Melecoin’s website can be found here.

The DFSA strongly advises consumers to use caution if engaging with MeleCoin, and warns against sending money to MeleCoin. 

In September 2017 the DFSA issued a general investor statement in relation to cryptocurrencies, highlighting risk associated with these products and noting that the DFSA does not regulate these types of product offerings.  The DFSA’s statement can be found here.

The DFSA has a page on its website devoted to alerts in relation to scams, including scams which misuse the name of the DFSA and/or the DIFC. All Alerts issued by the DFSA may be accessed by going to: ALERTS

The DFSA has also issued warnings and guidance about the common types of scams, including Advance Fee scams, perpetrated on consumers.  For more information on these scams please go to: HOW TO AVOID BEING SCAMMED

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Link:

DFSA Notice

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