thecoinrepublic.com
- Increasing online crypto scams in the UAE resulted in introducing new laws and penalties. Any individual who promotes online crypto scams might have to face five years of jail sentences and a fine of up to $272,000.
- Even though the country already had laws introduced for banning the promotion of cryptocurrencies, it did not have any provisions to penalize or punish such scammers, resulting in new laws.
- Since cryptocurrencies gained popularity, online crypto scams have been an issue for a long time. An earlier scam forced the government of UAE to publish a statement and disassociate themselves from the Dubai Coin.
Tricksters who promote online crypto scams in UAE (United Arab Emirates) would now possibly be charged to pay a fine of about $272,000 & an additional jail sentence of five years. These measures constitute a significant part of efforts made by the government to keep individuals safe from crypto scams online and are set to come into effect from 2 January 2022.
The new significant measures are a piece of wiping legal reforms introduced in November by Sheikh Khalifa, the country’s president, as reported by The National News, a private English-language newspaper published in Abu Dhabi. As per UAE, introducing such laws aims to conserve individuals’ rights & privacy, simultaneously protecting them from online frauds.
Hassan Elhais On New Laws
Hassan Elhais from Al Rowaad Advocates said that, even though the UAE previously had laws to ban the cryptocurrencies’ promotions, they do not have any provisions that might allow concerning authorities to charge any such tricksters with any penalties.
A statement from Elhais describing how these new measures are better than the previous ones was included in reports, which said, “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 $5,445 (Dh20,000) and $136,100 (Dh500,000). The same penalty applies to members of the public who promote cryptocurrencies unrecognised by authorities in the country.”
Elhais, concerning the laws that improve safety and protection for individuals from financial scams online, further explained that the article of previous laws involved similar objectives, and article 41 of new laws supplements that. He also quotes that the law “imposes a penalty of five years in prison and/or a fine between $68,000 and $272,000 against those who promote electronic currencies or fake companies to raise money from the public without a license from competent authorities”.
Increasing Crypto Scams
The increasing number of fake cryptocurrency schemes have led the authorities to escalate their interests in safeguarding individuals from online frauds. This can be observed in a recent event that took place in May 2021, the government of UAE was forced to publish a statement that clarifies that the government is not related to the Dubai Coin anyhow. The statement published concerning the Dubai Coin also elaborated that the website behind the crypto scam’s promotion was part of the phishing campaign made with the only motive to gather an individual’s personal information.
UAE Authorities Cautions Its Residents
The country’s law enforcement authority further cautioned its residents to stay aware and safe from all fraud crypto scams that specifically ensure wealthy returns in no time. This is the beginning not the end. As cryptocurrencies gain popularity and adoption, there is a possibility of online crypto scams skyrocketing. If this might be the case, we may further see new laws being introduced often, not just in UAE but from governments worldwide. Ensure a thorough analysis before landing on any investment decisions.