Fraud from crypto investors will be jailed for 5 years, laws made in UAE


Laws are being brought in the United Arab Emirates (UAE) in the interest of crypto investors. Under these, strict punishment has been guaranteed for crypto scammers targeting investors. The new rules will come into effect from January 2, 2022. Cryptocurrency-related fraud will attract up to five years in prison and a fine of up to 1 million AED (approximately Rs 2 crore). UAE President Sheikh Khalifa bin Zayed Al Nahyan announced a series of legal reforms last month. These laws are being brought with the aim of reducing the dangers of financial fraud.

UAE-based news portal, The National News, quoted Dr Hassan Elhais of Al Rowad Advocates as saying that according to Article 48, posting online misleading advertisements or false data about any product will result in legal consequences. Similar punishments also apply to those promoting unrecognized cryptocurrencies in the country.

Previously, the law against promotional activities involving crypto contained warnings, but did not provide for punishment. This had led to a rise in cases of misinformation and fraud with crypto investors. At the same time, Article 54 states that the use of electronic robots to share or circulate fake news in the country can be punished with 2 years in jail or a fine of up to 1 million AED or both.

Significantly, crypto culture is growing rapidly in the UAE and people are investing in it. Earlier this month, Dubai Media Office revealed that the Dubai World Trade Center (DWTC) will act as a crypto zone and regulator for cryptocurrencies in the coming days.

In May, the Dubai World Trade Center announced information after Dubai authorities warned people about fake news related to crypto. Abu Dhabi Police has also warned people to beware of fake cryptocurrency schemes that promise instant earnings.

Significantly, there has been an increase in the cases of crypto fraud around the world. In 2020, there were total crypto crimes of about $ 0.52 billion (about Rs 79,194 crore) all over the world.

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