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

Fraudsters selling on-line cryptocurrency scams in the United Arab Emirates (UAE) now face a doable five-year jail sentence plus a fantastic 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 defend 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 doable five-year jail time period and a most fantastic of over $270,000.

According to a report from The National News, the brand new measures are a component of sweeping authorized reforms launched by the nation’s president, Sheikh Khalifa, in November. The UAE says the legal guidelines are supposed to defend 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 knowledge on-line a couple of sure product will likely be punishable with jail and/or a fantastic 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 mentioned article 41 of the brand new legislation dietary supplements the earlier article, which had related aims.

“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 compelled 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 reality 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 concerning the financial troubles of some African international locations in addition to how digital currencies can present Africans with an escape route.

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