Dubai warns of 'phishing scam' as 'DubaiCoin' cryptocurrency shoots up by 1,000% overnight

A new cryptocurrency called DubaiCoin has skyrocketed in value by more than 1,000 percent in 24 hours, prompting concerns about online phishing scams.

A press release by a website called DubPay claimed: "DubaiCoin will soon be able to be used to pay for a range of goods and services both in-store and online, with the clear intention for the coin to be used in place of traditional bank-backed currencies."

“Circulation of the new digital currency will be controlled by both the city itself and authorised brokers.”

However, Dubai’s government swiftly issued a statement denying the contents of the release, and called the announcement “an elaborate phishing scam”.

#Doha extended the window in which work is not allowed to be done outdoors by two hours, which will apply for several additional weeks in each given year. 👇 #Qatar #WorkersRights #HumanRightshttps://t.co/ifH7F5dyBK

— The New Arab (@The_NewArab) May 28, 2021

“Dubai Coin cryptocurrency was never approved by any official authority,” the Emirati government’s media office tweeted. “The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors.”

Founded by ArabianChain Technology, the company says the website making the claims is fake.

Dubai coin has gone up in value by 1,114% in one day, according to Crypto.com, a cryptocurrency monitoring website, rising from $0.09 to $1,13.

The increase in price comes as well established cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and Cardano have been dropping in value over the last few weeks following an announcement that Elon Musk’s Tesla will not be taking Bitcoin over environmental concerns.

Cryptocurrency mining has been dogged by controversy for the enormous power it uses, and countries are also creating legislation to better tax the market.

Iran's President Hassan Rouhani on Wednesday announced a four-month ban on all cryptocurrency mining, a day after his energy minister apologised for unplanned power cuts in major cities.

Turkey earlier this year also added cryptocurrency trading platforms to its list of firms falling under anti-money laundering and terrorism financing regulation, according to a presidential decree.

Turkey's official gazette said the country’s latest expansion of rules will take immediate effect and cover “crypto asset service providers”, which would be liable to the existing regulations, Reuters reported.