Crypto scammers will receive up to five years in prison and a fine of AED 1 million under new UAE regulations

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New rules are being enacted in the United Arab Emirates (UAE) guaranteeing severe penalties for crypto scammers targeting investors in the country. These rules, which come into effect on January 2, 2022, provide for a prison sentence of up to five years and a fine of up to AED 1 million (approximately Rs 2 billion). The President of the United Arab Emirates, Sheikh Khalifa bin Zayed Al Nahyan, announced a series of legislative reforms last month, and these laws are part of it to reduce the risk of financial fraud.

“According to Article 48, the publication of misleading advertisements or inaccurate data about a product on the Internet will have legal consequences. The same punishment applies to members of the public who promote cryptocurrencies that are not recognized by the country’s authorities, ”said a report by UAE-based news portal The National News, quoting Dr. Hassan Elhais from Al Rowaad Advocates.

Previously, the law warned against but did not penalize crypto promotional activities, leading to a surge in cyber criminals chasing crypto investors with misinformation.

“Article 54 says that using or modifying electronic robots to share, relay or distribute fake news in the country can be punished with a prison sentence of two years or a fine of up to AED 1 million or both,” Elhais reportedly added .

The cryptoculture is spreading in regions of the UAE.

For example, earlier this month the Dubai Media Office announced that the Dubai World Trade Center (DWTC) would become a crypto zone and regulator for cryptocurrencies in the coming days.

The development was announced after Dubai authorities warned of crypto-related fake news in May.

Abu Dhabi police have also warned people to beware of fake cryptocurrency systems that promise instant wealth.

Worldwide, the total number of crypto-crime in 2020 was around 10.52 billion US dollars (approximately 79.194 billion rupees), a report had revealed in early April.

In a recently released PSA, the FBI said scammers are tricking innocent people into using physical cryptocurrency ATMs and digital QR codes to complete malicious transactions.

This week, Hyderabad Police also warned crypto investors in India to urgently refrain from transferring assets to unknown, unauthorized wallets, claiming that cybercrime has increased in the country.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts. Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended as financial advice, trading advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for losses that may arise from an investment based on perceived recommendations, forecasts or other information contained in the article.

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