UAE Authorities Announce New Stringent Measures Against Crypto Scammers
December 27 2021 - 5:04PM
NEWSBTC
Under stringent new UAE regulations designed to safeguard the
public from financial fraud, cyber criminals who promote
cryptocurrency frauds online face up to five years in prison and
fines of up to $272 million. Crypto-scammers To Face 5 Years
Imprisonment Promoters of online cryptocurrency frauds now risk a
possible five-year prison sentence and a maximum fine of almost
$270,000 under the UAE’s new internet security regulations, which
take effect on January 2, 2022. The crackdown was announced last
month as part of President Sheikh Khalifa’s series of broad legal
reforms. The new law expands the country’s existing cyber-crime
rules to include the promotion of rogue cryptocurrency schemes that
are not recognized by UAE authorities. Despite the fact that many
countries routinely issue warnings in this area, the UAE government
has decided to take it a step further by imposing hefty penalties
on those who violate the law. Cybercriminals who promote
cryptocurrency frauds on the internet risk up to 5 years in prison
and a fine of up to 1 million DH ($272,259), as the country’s
government has strengthened its regulations to protect residents
from cyber fraud. “As per article 48, posting misleading ads or
inaccurate data online about a certain product will be punishable
with jail and/or a fine between Dh20,000 and Dh500,000,” said Dr
Hassan Elhais, of Al Rowaad Advocates, who outlined new legislation
tackling cyptocurrency scams. “The same penalty applies to members
of the public who promote cryptocurrencies unrecognised by
authorities in the country.” BTC/USD float above $50k post-xmas.
Source: TradingView Related article | Bittrex Global CEO Declares
Dubai Will Gain Benefit From Cryptocurrency Market Expansion UAE
Citizens Fell For Crypto-Scams This Year Despite strong regulation
and a crypto-friendly climate, UAE citizens have continued to be
victims of financial crime. In fact, in the first half of 2021,
consumers in Dubai alone lost about 80 million DH in hundreds of
such frauds. The UAE police responded by issuing warnings to people
about bogus cryptocurrency trading and profit-making schemes.
Regardles, DubaiCoin was one of the most intricate phishing frauds
the city had to deal with. The digital asset was marketed as having
government backing, and investors jumped at the chance, causing its
value to skyrocket in a short amount of time. Others have not been
so fortunate, as nine individuals from the country were sentenced
to ten years in prison earlier this month for defrauding people out
of 18 million DH through a get-rich-quick bitcoin trading scheme.
When it comes to creating a comprehensive and inclusive crypto
framework, the UAE is at the forefront. The Dubai World Trade
Center was declared both a comprehensive crypto zone and a
regulator earlier this month, allowing it to create an enormous hub
for the sector’s expansion. Related articles | Authorities To
Imprison A Man From Ohio For Defrauding $30 Million In A
Cryptocurrency Scam
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