UAE to Jail Promoters of Fraudulent Cryptocurrency Schemes for Five Years, Offenders to Pay Over $270K in Fines – Regulation Bitcoin News

A report states that fraudsters advertising online cryptocurrency scams are now facing a five year sentence and up to $272,000 in fines. The new measures, which are set to take effect on January 2, 2022, are part of the government’s effort to protect people from online scams.

Protection of Internet Users is a new goal with the introduction of New Measures

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 a report from The National News, the new measures are a part of sweeping legal reforms introduced by the country’s president, Sheikh Khalifa, in November. According to the UAE, these laws were created to prevent internet fraud and protect personal rights and privacy.

Although the UAE had already passed laws prohibiting cryptocurrency promotion, Hassan Elhais, Al Rowaad Advocates said that these laws did not contain provisions that would allow authorities to punish such criminals. Elhais explains how these new laws differ from previous legislation in the report. He said:

Article 48 states that misleading or incorrect information about products online can result in jail time and/or fines of between $5,445 and $136,000. Public members who encourage cryptocurrency that are not recognized by the authorities of their country face the exact same punishment.

Concerning the UAE’s laws that seek to enhance online safety and protection of people from financial crimes, Elhais said article 41 of the new law supplements the previous article, which had similar objectives.

“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.

The growing problem of fake cryptocurrency schemes

Meanwhile, the report suggested that UAE authorities’ growing interest in protecting the public from online scams follows a rise in the number of fraudulent cryptocurrency schemes. For instance, in late May 2021, the government was forced to release a statement disassociating itself from “Dubai Coin.”

The statement stated that the site promoting scam coins was actually a sophisticated phishing scheme designed to steal private information. Similarly, the country’s law enforcement has also warned residents to be wary of fake cryptocurrency schemes that promise instant wealth.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.

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