With the increasing adoption of cryptocurrencies, cryptocurrencies have become the subject of cybercrime. In this context, news of crypto money fraud has come to the fore frequently from all over the world lately.
Expanded the scope of current cybercrime law in the United Arab Emirates to catch scammers seeking to capitalize on the growing popularity of cryptocurrencies.
Under the current cybercrime law, which will come into effect on January 2, 2022, those who support cryptocurrency fraud will face up to 5 years in prison and fines of up to Dirham 1 million ($272,261).
The new law, which aims to protect the UAE public from financial fraud, also includes penalizing advertisements of unlicensed cryptocurrencies not recognized by the UAE.
Dr Hassan Elhais, one of the lawyers in the country, stated that previous laws prohibited but did not penalize advertisements promoting cryptocurrencies.
“According to the new law, posting misleading advertisements or false data about a particular product online will be punishable by imprisonment and/or a fine of between Dirham 20,000 and 500,000. The same penalty applies to ads promoting cryptocurrencies that are not recognized by the authorities in the country.”
Last July, Abu Dhabi police warned investors against scammers promising wealth and involving cryptocurrencies.