UAE Jails Promoters of Fraudulent Cryptocurrency Schemes for Five Years, Offenders Pay Over $200,000 in Fines – Regulation

Scammers promoting online cryptocurrency scams in the United Arab Emirates (UAE) now face a possible five-year prison sentence and a fine of up to $272,000, according to a report. The new measures, due to come into force on January 2, 2022, are part of the government's efforts to protect people from online fraud.

New measures are intended to protect Internet users

Under the UAE's new online security laws, which come into effect on January 2, 2022, proponents of online cryptocurrency scams now face a possible prison sentence of five years and a maximum fine of over $270,000.

according to a Test report According to The National News, the new measures are part of comprehensive legal reforms introduced by the country's President Sheikh Khalifa in November. The UAE says the laws are intended to protect internet users from electronic fraud and protect privacy and rights.

While the UAE already had laws banning the promotion of cryptocurrencies, these laws lacked provisions that would allow authorities to punish such perpetrators, according to Hassan Elhais of Al Rowaad Advocates. The report quotes Elhais explaining how the new measures differ from the previous law. He stated:

Under Article 48, posting misleading advertisements or inaccurate data online about a particular product is punishable by imprisonment and/or fines ranging from $5,445 (Dh20,000) to $136,100 (Dh500,000). The same penalty applies to members of the public who promote cryptocurrencies that are not recognized by the country's authorities.

Regarding the UAE's laws aimed at improving online security and protecting people from financial crimes, Elhais said Article 41 of the new law complements the previous article with similar objectives.

“It imposes a penalty of five years in prison and/or a fine of between $68,000 and $272,000 on those who promote electronic currencies or fake companies to raise money from the public without authorization from relevant authorities,” Elhais is quoted as saying.

Fake cryptocurrency systems are a growing problem

Meanwhile, the report suggested that the UAE authorities' growing interest in protecting the public from online scams follows an increase in the number of fraudulent cryptocurrency schemes. For example, at the end of May 2021, the government was forced to... Explanation distances itself from “Dubai Coin.”

At the time, the statement claimed the website promoting the coin scam was in fact a sophisticated phishing campaign aimed at stealing personal information. Similarly, law enforcement in the country has warned residents to beware of fake cryptocurrency schemes that promise instant wealth.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and author in Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

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