Under new UAE legislation aimed at safeguarding the public from financial fraud, cybercriminals who encourage cryptocurrency crimes online face up to five years in prison and fines of up to $272 million.
Promoters of online cryptocurrency schemes face a five-year prison sentence and a maximum punishment of more than $270,000 under the UAE’s new internet security legislation, which goes into effect on January 2, 2022.
Last month, President Sheikh Khalifa announced the crackdown as part of a raft of broad legal reforms.
Extensive cybercrime legislation
The new law expands the country’s existing cyber-crime rules to include the promotion of rogue cryptocurrency schemes that are not authorized by UAE authorities.
Despite the fact that many countries provide regular warnings in this area, the UAE government has decided to take it further by imposing severe penalties on anyone who violates the law.
Because the country’s government has strengthened its regulations to protect inhabitants from cyber fraud, hackers who encourage cryptocurrency crimes on the internet risk up to 5 years in prison and a fine of up to 1 million DH ($272,259).
UAE residents are victims of cryptocurrency frauds
Despite strict regulation and a crypto-friendly climate, UAE residents have fallen prey to cryptocurrency frauds. Hundreds of similar crimes cost Dubai customers around 80 million dirhams in the first half of 2021.
The UAE Police Department replied by releasing public warnings regarding bogus bitcoin trading and profit-making schemes.
DubaiCoin, on the other hand, was one of the city’s most intricate phishing schemes. Investors flocked to the digital asset after hearing that it was backed by the government, allowing its value to skyrocket in a short amount of time.