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UAE imprison promoters of fraudulent cryptocurrency systems for five years, criminals pay fines of over $ 200,000 – regulation

Scammers promoting online cryptocurrency scams in the United Arab Emirates (UAE) face a possible five-year prison sentence and a fine of up to $ 272,000, according to a report. The new measures, due to go into effect on January 2, 2022, are part of the government’s efforts to protect people from online fraud.

New measures are designed to protect internet users

Under the UAE’s new online security laws, which will come into effect January 2, 2022, advocates of online cryptocurrency fraud now face a possible five-year prison sentence and a maximum fine of over $ 270,000.

after a report According to The National News, the new measures are part of major legislative reforms introduced by the country’s President Sheikh Khalifa in November. The UAE say the laws are designed to protect internet users from electronic fraud and protect privacy and rights.

While the UAE already had laws banning the promotion of cryptocurrencies, those laws lacked provisions that would allow authorities to punish such offenders, according to Hassan Elhais of Al Rowaad Advocates. The report quotes Elhais, who explains how the new measures differ from the previous law. He stated:

According to Article 48, posting misleading advertisements or inaccurate data online about a specific product will result in imprisonment and / or fines ranging from $ 5,445 (Dh20,000) to US $ 136,100 (Dh500,000). The same penalty applies to members of the public who promote cryptocurrencies that are not recognized by the country’s authorities.

Regarding the United Arab Emirates’ laws aimed at improving online safety and people’s protection from financial crime, Elhais said that Article 41 of the new law complements the previous article with similar objectives.

“It imposes a five-year prison sentence and / or fine of between US $ 68,000 and US $ 272,000 on those who promote electronic currencies or counterfeit businesses in order to raise money from the public without authorization from the relevant authorities,” Elhais is quoted as saying.

Counterfeit cryptocurrency systems are a growing problem

Meanwhile, the report suggested that the UAE authorities’ growing interest in protecting the public from online fraud followed an increase in the number of fraudulent cryptocurrency systems. For example, at the end of May 2021, the government was forced to adopt a Explanation distances itself from “Dubai Coin.”

At the time, the statement claimed the website promoting the coin scam was in fact an elaborate phishing campaign aimed at stealing personal information. Similarly, law enforcement in the country has warned residents to beware of fake cryptocurrency systems that promise instant wealth.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, writer, and writer based in Zimbabwe. He has written extensively on the economic problems of some African countries and how digital currencies can provide an escape route for Africans.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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