Crypto crooks face five years in prison and a fine of AED 1 million under new UAE regulations

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New rules are adopted in the United Arab Emirates (UAE), ensuring strict penalties for crypto scammers targeting investors in the country. These rules, which come into effect on January 2, 2022, carry a prison sentence of up to five years as well as a sentence of up to AED 1 million (approximately Rs. 2 crore). UAE President Sheikh Khalifa bin Zayed Al Nahyan announced a series of legal reforms last month, and these laws are part of them aimed at reducing the risk of financial fraud.

“In accordance with Section 48, posting of misleading ads or inaccurate data online about any product will be subject to legal repercussions. The same penalty applies to members of the public who promote unrecognized cryptocurrencies. by the country’s authorities, “reports the UAE-based news agency. The National News portal quoted Dr Hassan Elhais from Al Rowaad Advocates.

Previously, the law warned against crypto promotional activities, but did not penalize it, leading to an increase in the number of cybercriminals hunting down crypto investors with disinformation.

“Article 54 states that using or modifying electronic robots to share, re-share or disseminate fake news in the country may be punishable by a prison sentence of two years or a fine of up to ‘to AED 1 million, or both, “Elhais reportedly added. .

Crypto culture is growing in the regions of the United Arab Emirates.

Earlier this month, for example, the Dubai Media Office revealed that the Dubai World Trade Center (DWTC) will become a crypto zone and regulator for cryptocurrencies in the coming days.

The development was announced after authorities in Dubai in May warned people about crypto-related fake news.

Abu Dhabi police have also warned people to beware of bogus cryptocurrency schemes promising instant wealth.

Globally, the total crypto crime in 2020 was around $ 10.52 billion (roughly Rs 79,194 crore), a report revealed earlier in April.

In a recently released public service announcement, the FBI said crooks trick innocent people into using physical cryptocurrency ATMs and digital QR codes to conduct malicious transactions.

This week, Hyderabad Police also warned crypto investors in India to refrain from transferring assets to unknown and unauthorized wallets, saying the rate of cybercrime has increased in the country.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts. Cryptocurrency is unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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