In the United Arab Emirates (UAE), fraudsters promoting cryptocurrency scams face a possible five-year prison sentence plus a fine of up to $137,000, according to a report. These new measures, which will take effect on January 2, 2022, are part of the government’s effort to combat online scams.
A new set of measures aims to protect internet users:
Promoter of online cryptocurrency scams now face five-year jail terms and fines of over $137,000, under UAE’s new online security laws that take effect on January 2, 2022.
The National News reports that the new measures are a result of broad legal reforms introduced by President Sheikh Khalifa last November. UAE officials say the laws are designed to protect internet users from fraud and preserve their privacy and rights.
According to Hassan Elhais of Al Rowaad Advocates, UAE already has laws prohibiting the promotion of cryptocurrencies, but these laws lack provisions to penalize those who violate them. Elhais describes how the new measures differ from the previous law in the report. He 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.”
According to Elhais, the new UAE law contains a new article 41 that supplements an earlier article, which had similar objectives, which seeks to improve online safety and protect the population from financial crimes.
According to Elhais, those who promote electronic currencies or fake companies without a license from competent authorities will face a five-year prison sentence and a fine between $68,000 and $137,000.
Cryptocurrency scams are a growing problem:
According to the report, UAE authorities are taking measures to protect the public from online scams in response to an increase in fraudulent cryptocurrency schemes. As an example, in late May 2021, the government was forced to issue a statement distancing itself from “Dubai Coin.”
In a statement from the time, the website promoting the scam coin was described as an advanced phishing scam to steal personal information. In addition, law enforcement officials have warned residents to be wary of dubious cryptocurrency schemes that promise instant wealth.