Cryptocurrency scam promoters in the United Arab Emirates (UAE) can now face up to five years in prison plus a fine of up to $272,000.
The new measures, scheduled to come into effect on January 2, 2022, are part of the government’s efforts to protect people from the dangers of online fraud.
New measures to protect Internet users
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This is part of a new online privacy law, effective January 2, 2022.
Follow report from The National News, the new measures are part of sweeping legal reforms introduced by President Sheikh Khalifa in November.
Although the UAE already has laws banning cryptocurrency advertising, according to Hassan Elhais of Al Rowaad Advocates, these laws lack provisions that allow authorities to punish violators.
The report cites how the new measures differ from the previous law. He stated:
Under section 48, posting misleading advertising or inaccurate data about a certain product is punishable by imprisonment or a fine ranging from $5,445 to $136,100.
Meanwhile, the report shows the growing interest of the UAE authorities in protecting the public from online scams following an increase in the number of crypto scam schemes.
Example: Dubai Coin – a cryptocurrency that claims to have official government backing but the Dubai Government Communications Office says it is a scam.
Similarly, the country’s law enforcement agency has also warned people to be wary of fake cryptocurrency schemes that promise instant wealth.