The United Arab Emirates is serious about cracking down on promoters of online cryptocurrency scams. These cybercriminals now face five years in prison and a fine of up to more than $270,000.
These new rules are part of wide-ranging legal reforms initiated by President Sheikh Khalifa. The UAE said the laws are intended to protect internet users from electronic fraud and preserve personal privacy and rights.
While UAE already had measures banning the promotion of cryptocurrencies, according to Hassan Elhais of the Dubai-based law firm Al Rowaad Advocates, they lacked teeth because it failed to allow authorities to penalize offenders, he said.
The UAE is also targeting anyone circulating fake news by “bots” to spread misinformation. Under the terms of the law, the use or modification of electronic robots to share, re-share or circulate fake news in the country can be subject to a prison term of two years and up to $226,575 or both.
These new measures take effect on Jan. 2, part of the government’s effort to protect consumers from online scams.
UAE authorities’ interest in protecting the public from online scams stemmed from an increase in fraudulent cryptocurrency schemes. For the first half of 2021, more than $21 million was lost to scammers, according to Tarek Mohammed, head of the Digital Assets Crime Section at Dubai Police.
He said any company that accepts crypto payments is not doing so with the authorization of the UAE government.
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