Monday, June 27, 2022
HomeCrypto NewsUAE to Jail Promoters Of Fraudulent Cryptocurrency Systems for Five Years. Offenders...

UAE to Jail Promoters Of Fraudulent Cryptocurrency Systems for Five Years. Offenders to Pay More Than $270K in Fines

Fraudsters promoting online cryptocurrency scams in the United Arab Emirates (UAE) now face a possible five-year jail sentence plus a fine of up to $272,000, according to a report. These new measures will take effect January 2, 2022, as part of the government’s efforts to protect citizens from online scams.

New measures are taken to protect internet users
As part of UAE’s new online security laws which go into effect on January 2, 2022, promoters of online cryptocurrency scams now face a possible five-year jail term and a maximum fine of over $270,000.

According to The National News, these new measures are part of the country’s sweeping legal reforms, which were introduced in November by Sheikh Khalifa. According to the UAE, the laws were designed to protect internet users against electronic fraud and preserve privacy rights and rights.

Although the UAE had already passed laws prohibiting the promotion of cryptocurrency, Hassan Elhais, Al Rowaad Advocates said that these laws did not contain provisions that would allow authorities to punish such offenders. Elhais explains how the new laws differ from the old. Elhais stated that:

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). Members of the public who promote cryptocurrency that is not recognized by the authorities in their country are subject to the same penalties.

Elhais stated that article 41 is a new article in the UAE law to improve online safety and protect people from financial crime.

“It 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 licence from competent authorities,” Elhais is quoted explaining.

Fake Cryptocurrency Systems are a Growing Problem
The report indicated that the UAE authorities are increasingly interested in protecting the public against online scams due to a rise of fraudulent cryptocurrency schemes. In late May 2021,, the government was forced by law to issue a disassociation statement from “Dubai Coin”.

The statement stated that the website advertising the scam coin was actually a sophisticated phishing campaign to steal personal data. The country’s law enforcement also warns residents against fake cryptocurrency schemes promising instant riches.

What do you think about this story? Let us know what you think about this story in the comments below.

Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, author, and writer has been awarded the Zimbabwe Journalism Award. He has written extensively on the economic problems of certain African countries and how digital currencies can offer Africans an escape route.

Image Credits: Shutterstock. Pixabay. Wiki Commons.

Disclaimer: This article is intended for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the use or reliance of any content, goods, or services in this article.

Read More

Henry Hicks
Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!

Please enter your name here

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

Most Popular