Cybercriminals who encourage cryptocurrency fraud online risk up to five years in jail and fines of up to $272 million. The severe new UAE legislation aims to protect the public from financial fraud, especially crypto-related scams. Cybercrime is a type of crime that includes the use of a computer and a network. The Cryptocurrency scammers use a computer to commit a crime or it could have been the target. UAE cybercrime aims to jeopardise a person’s or company’s security and financial wellbeing.
Cryptocurrency Scammers will face 5 Years in Prison
The UAE’s new internet security legislation will go into effect on January 2, 2022. Under this new legislation, promoters of online cryptocurrency fraud will now face a possible five-year jail sentence and a maximum fine of about $270,000.
The authorities launches the crackdown last month as part of President Sheikh Khalifa’s comprehensive law reform package. The new law broadens the country’s current cybercrime regulations to cover the marketing of rogue cryptocurrency schemes that UAE authorities do not recognise.
Despite the fact that many nations frequently give warnings in this area, the UAE government is opting to go a step further by imposing severe penalties on anyone who breaks the law. Cybercriminals who encourage cryptocurrency fraud on the internet face up to 5 years in jail and a fine of up to 1 million DH ($272,259), as the government has toughened legislation to protect people from cyber fraud.
“According to article 48, publishing deceptive adverts or erroneous data online regarding a certain product would be penalised by jail time and/or a fine ranging from Dh20, 000 to Dh500, 000,” said Dr Hassan Elhais of Al Rowaad Advocates, highlighting the new law that aims at combating cryptocurrency fraud.
The UAE is attempting to safeguard the public
Cyber thieves have attempted to profit from the rising popularity of cryptocurrencies throughout the world. Cryptocurrencies are a type of digital money that does not have a physical form. They can include coins or notes but in virtual form. You can save them in a digital wallet. However, although you can’t hold them in your hand, they still have a monetary value. Consequently, you can use them to buy various items.
Earlier this year, Abu Dhabi Police issued a warning to residents to be wary of fraudulent cryptocurrency schemes. These scams usually promise quick and easy fortune. The police warned citizens not to be deceived by advertisements promising quick and simple money. In May, Dubai issued a warning against cryptocurrency fraud after fraudulent assertions were spreading tying it to the Dubai Coin.
A Dubai court sentenced Sydney Lemos and Ryan Fernandez, two Indian Cryptocurrency Scammers, to more than 500 years in prison in 2018 for their roles in an extensive fake currency operation.
Investigators believe Exential Investments Inc., formerly of Dubai Media City, defrauded over 7,000 investors from throughout the world of approximately $500 million (Dh1.8 billion). Cybercriminals are carrying out scams involving cryptocurrency in nations all over the world.
In May, authorities detained six people in connection with a €30 million ($36.2 million) bitcoin fraud. Its targets were hundreds of victims across Europe. After citizens claimed losses of €7 million due to investment fraud, German authorities initiated an investigation against the gang.