New rules are being passed in the United Arab Emirates (UAE), guaranteeing stringent punishments for crypto scammers targeting investors in the country. These rules which will come to effect on January 2, 2022, entail prison time for up to five years as well as a penalty up to AED 1 Million (roughly Rs. 2 crore). UAE President Sheikh Khalifa bin Zayed Al Nahyan had announced a series of legal reforms last month, and these laws are part of them aiming to reduce risks of financial frauds.
“As per article 48, posting 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 cryptocurrencies unrecognised by authorities in the country,” a report by UAE-based news portal The National News quoted Dr. Hassan Elhais of Al Rowaad Advocates.
Previously, the law warned against crypto promotion activities, but did not penalise it leading to a rise in cyber criminals chasing crypto investors with misinformation.
“Article 54 states that using or modifying electronic robots to share, re-share or circulate fake news in the country can be subject to a prison term of two years or a fine of up to AED 1 million, or both,” Elhais reportedly added.
The crypto culture is expanding in regions of the UAE.
The development was announced after the Dubai authorities in May had warned people about crypto-related fake news making rounds.
The Abu Dhabi Police has also warned people to beware of fake cryptocurrency schemes promising instant wealth.
Globally, total crypto crimes in 2020 amounted to around $10.52 billion (roughly Rs. 79,194 crore), a report had revealed earlier in April.
In a recently released PSA, the FBI said that scammers have been making innocent people use physical cryptocurrency ATMs and digital QR Codes to complete malicious transactions.
This week, the Hyderabad Police also warned crypto investors in India to strongly refrain from transferring assets into unknown, unauthorised wallets, asserting that cybercrime rate has heated up in the country.