Thursday, January 27, 2022

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

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Fraudsters selling on-line cryptocurrency scams in the United Arab Emirates (UAE) now face a potential five-year jail sentence plus a superb of up to $272,000, in accordance to a report. The new measures, that are set to take impact on January 2, 2022, are half of the federal government’s effort to shield folks from on-line scams.

New Measures Seek to Protect Internet Users

As half of UAE’s new on-line safety legal guidelines which go into impact on January 2, 2022, promoters of on-line cryptocurrency scams now face a potential five-year jail time period and a most superb of over $270,000.

According to a report from The National News, the brand new measures are an element of sweeping authorized reforms launched by the nation’s president, Sheikh Khalifa, in November. The UAE says the legal guidelines are supposed to shield web customers from digital fraud and to protect private privateness and rights.

While UAE already had legal guidelines banning the promotion of cryptocurrencies, in accordance to Hassan Elhais of Al Rowaad Advocates, these legal guidelines lacked provisions enabling authorities to penalize any such offenders. The report quotes Elhais explaining how the brand new measures differ from the earlier legislation. He acknowledged:

As per article 48, posting deceptive advertisements or inaccurate information on-line a couple of sure product will likely be punishable with jail and/or a superb between $5,445 (Dh20,000) and $136,100 (Dh500,000). The identical penalty applies to members of the general public who promote cryptocurrencies unrecognised by authorities in the nation.

Concerning the UAE’s legal guidelines that search to improve on-line security and safety of folks from monetary crimes, Elhais stated article 41 of the brand new legislation dietary supplements the earlier article, which had comparable targets.

“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 Schemes a Growing Problem

Meanwhile, the report steered that UAE authorities’ rising curiosity in defending the general public from on-line scams follows an increase in the quantity of fraudulent cryptocurrency schemes. For occasion, in late May 2021, the federal government was pressured to launch a statement disassociating itself from “Dubai Coin.”

At the time, the assertion claimed the web site selling the rip-off coin was in truth an elaborate phishing marketing campaign designed to steal private info. Similarly, the nation’s legislation enforcement has additionally warned residents to be cautious of faux cryptocurrency schemes that promise prompt wealth.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, writer and author. He has written extensively in regards to the financial troubles of some African nations in addition to how digital currencies can present Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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