The Government of Uruguay has launched a campaign to stop cryptocurrency scams.

The Uruguayan Interior Ministry is taking steps to alert people about the dangers of engaging in potentially fraudulent cryptocurrency schemes. "Fake Coins: Cryptocurrency Scams" is the name of the campaign, which aims to educate the public about the most typical types of cryptocurrency scams.

More government entities are becoming aware of how some parties are exploiting cryptocurrency to carry out various types of frauds, and more of these institutions are working to educate citizens about it. The Uruguayan Ministry of the Interior has issued a warning, launching a new campaign dubbed "Fake Coins: Cryptocurrency Scams" in collaboration with El Paccto and Cibel@, two EU-Latam joint anti-crime organisations.

Fake Coins says:

The goal of the project is to increase awareness about the most common bitcoin scams. Citizens will be able to see how they are made and what methods the fraudsters use in this way.

Police departments and prosecutions from 17 nations have joined the effort, including Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, Guatemala, Honduras, México, Panama, Paraguay, Peru, Portugal, Dominican Republic, and Uruguay.

To educate the Latam public how a crypto scam differs from legitimate cryptocurrency initiatives, the project uses many cryptocurrency projects and phoney token names that the organisation has identified as scams. In addition, the campaign categorises these scams into distinct types based on their objective. Scams including simulation or impersonation, seduction scams, pyramid recruiting scams, and fake e-mail advertising are among them.

With the popularity of bitcoin in countries like Argentina, Brazil, and Venezuela, the problem of cryptocurrency frauds has expanded substantially. In fact, one of the factors that has pushed the adoption of cryptocurrency rules in some of these nations has been this type of scam.

The newly established crypto law in Brazil, where a number of residents have been affected by similar incidents, alters the penal code to cover crypto crimes. The offences are classified as "fraud in the provision of virtual assets, securities, or financial assets," and the penalties range from two to six years in prison plus fines.

The Uruguayan Ministry of Foreign Affairs recommends checking the project's website for more information and reporting any cryptocurrency initiative suspected of being a scam.