The UAE is cracking down on crypto scammers to stop all industry fraud. Regulators say anyone involved in a crypto scam faces up to five years in prison and a heavy fine.
Cryptocurrencies have been a booming topic over the past few years. The rapid increase in the value of Bitcoin and many other cryptocurrencies has spurred a lot of interest from people worldwide. It has also brought about a side effect: crypto crime. This type of crime refers to the illegal use of cryptocurrency by different people for different purposes, such as money laundering and financing terrorism.
Due to the decentralized nature of cryptocurrencies, it is a lot easier for hackers to commit a crime with them than it is with fiat currencies.
According to a report by UAE-based news outlet The National News, new policies are being enacted to ensure that crypto scammers targeting investors in the country face severe penalties.
Crypto scams attempt to obtain private information such as a ‘private key’ or pass codes to deceive people into sending cryptocurrency to a hacked digital wallet.
As per section 48 in the Constitution, posting misleading ads or information about any item online can be punished with legal penalties. The same applies to public figures who promote cryptocurrency that is not recognized by the nation’s authorities.
Previously, UAE legislation prohibited but did not penalize the promotion of cryptocurrency. The modifications included penalties for the crime, which is first in the nation.
Now Those who promote electronic currencies or bogus firms to gather money from the public without a license from competent authorities will face a punishment of five years in jail and a fine of between Dh250,000 and Dh1 million.