Crypto, trading apps, finfluencers and get-rich-quick schemes

Your feed is full of people who say they got rich fast. Regulators around the world, including in the UAE, keep issuing warnings for a reason. Here is how to protect your money and check who you are dealing with.

Crypto: what regulators say

• The UK FCA says that if you invest in crypto 'you should be prepared to lose all the money you have invested.'
• The FCA adds that crypto remains high risk with no protections if something goes wrong, and you are highly unlikely to be covered by the UK's compensation scheme.
• It also notes that crypto prices are very volatile and that scammers have been increasingly active in targeting crypto investors.
• In Dubai, the Virtual Assets Regulatory Authority (VARA) regulates virtual assets across Dubai's mainland and free zones, except the DIFC. In October 2024 it issued a public warning to 'avoid engaging with any unlicensed firms'.

Red flags UAE regulators list

• A joint 2022 guidance from the UAE Central Bank, the SCA (now CMA), VARA, the DFSA, the FSRA and two ministries lists warning signs of unlicensed providers.
• These include no real licence, no physical office or UAE address, promises of high or guaranteed returns, pressure to invest quickly and unsolicited calls or messages.
• Also watch for fake exchanges and wallets, phishing links and unapproved coin offerings.
• The guidance warns that unlicensed providers often lack safeguards for client money and dispute channels, so you may lose your funds to fraud or theft.

Trading apps and leverage

• Apps can make buying and selling feel like a game, with notifications and quick taps. Frequent trading is not the same as investing.
• Some products let you trade with borrowed money (leverage), which multiplies gains and losses, so a small price move against you can wipe out your whole deposit.
• Always check whether an app is a licensed broker itself or only passes your orders to one, and which regulator licenses it.
• If you are under 18, any account must be opened and controlled by a parent or guardian, as covered in the stock market lesson.

Finfluencers

• In the UAE, authorities announced in 2025 that finfluencers must obtain a licence, and the SCA urged the public to 'verify the registration status of financial influencers before acting on their advice', according to Khaleej Times.
• The regulator publishes a list of licensed finfluencers in the Open Data section of its website, according to the same report.
• Finfluencers often earn money when you click, sign up or buy, so their excitement is not independent advice.
• Ask: is this person licensed, are they paid to promote this, and what do they gain if I buy?

How to check a firm or adviser

• Ask which regulator licenses the firm, then check its status yourself on that regulator's official website, as the UAE joint guidance advises.
• In the UAE: the CMA for the mainland securities market; the DFSA public register for the DIFC; the FSRA public register for ADGM; VARA's public register for virtual asset firms in Dubai.
• ADGM warns that being registered as a company in a free zone is not the same as being regulated for financial services.
• In the UK, the FCA says to use its Firm Checker and Warning List and to beware of 'clone firms' that copy real firms' names; use only contact details from the register.
• A licensed adviser is someone authorised by a regulator to give investment advice. Investor.gov suggests asking how they are paid, what products they can sell and what conflicts of interest they have.

If it sounds too good to be true

• The FCA's ScamSmart warning: 'if it sounds too good to be true, it probably is.'
• Scammers often contact people out of the blue, including through social media, and try to build a friendship before asking for money.
• Never share passwords, one-time codes or wallet recovery phrases with anyone.
• In May 2026 the CMA warned investors against an unlicensed firm operating in the UAE and stated that it 'assumes no liability for any dealings with unlicensed individuals or entities', according to Khaleej Times.
• If you think you have been targeted, stop, tell a trusted adult, and report it to the regulator and the police.