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- According to a report by the UAE-based news article, The National News, new legislation is being passed in the UAE that would ensure harsh penalties for crypto fraudsters who target investors in the nation.
- In the United Arab Emirates, promoters of fraudulent cryptocurrency schemes face up to five years in jail and penalties of more than £200,000. (UAE).
- As part of the country’s new internet security regulations, the new restrictions are expected to go into force on January 2, 2019.
They are part of the country’s president, Sheikh Khalifa’s, extensive legal changes, which he announced in November.
According to The National, the legislation is meant to safeguard internet users from electronic fraud while still protecting personal privacy and rights.
Action against people who use ‘bots’
The UAE is also taking action against people who use ‘bots’ to distribute false information.
“Article 54 defines that using or changing electronic robots to distribute, re-share, or spread fake news in the nation can result in a two-year prison sentence, a fine of not less than £2026 and up to £200k, or both,” said Dr. Elhais explained.
Rising bitcoin scams, a major concern
In July, nine men were sentenced to ten years in prison for carrying out a scam of around £3 million in a get-rich-quick bitcoin trading scheme.
According to the most recent data, consumers in Dubai have lost 80 million DH worth £16 million to crypto scams in just the first half of 2021.
Earlier this month, the Dubai World Trade Center was approved as both a comprehensive crypto zone and a regulator, allowing it to construct a holistic center for the sector’s growth.
The US Federal Bureau of Investigation (FBI) issued a warning in November to hackers who use Bitcoin ATMs and QR codes to scam innocent individuals. In a recent Public Service Announcement (PSA), the FBI stated that fraudsters are increasingly instructing victims to utilize physical bitcoin ATMs and digital QR codes to complete payment transactions.
Legislations in the result against rising bitcoin scams
Scams using cryptocurrency have apparently cost investors over £5.7 billion this year alone, hitting an all-time high of 81 percent.
As a result, authorities issued warnings to people about fake cryptocurrency trading and profit-making schemes.
Various UAE agencies have already expressed worry about crypto fraudsters, as bogus cryptocurrency schemes become a rising problem. Law enforcement in the nation has also cautioned citizens to be aware of fraudulent cryptocurrency scams that promise rapid fortune.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
