Latest regulations are being passed in the United Arab Emirates (UAE), ensuring strict punishments for cryptocurrency scammers targeting investors in the nation. These regulations which will come to effect on January 2, 2022, call for prison time for up to half a decade and penalty up to approximately Rs. 2 crores i.e. AED 1 Million. Sheikh Khalifa bin Zayed Al Nahyan, President of UAE had declared a series of legal reforms the previous month and these rules are a part of them targeting to decrease the risks of financial frauds.
According to a report, as per article 48, promoting confusing advertisements or incorrect info online about any item will be subject to legal repercussions. The same penalty applies to the member of the public who advertises cryptos unknown by authorities in the nation.
Earlier, the law cautioned against cryptocurrency advertisement activities but didn’t penalize them resulting in an increase in cybercriminals following cryptocurrency investors with wrong data.
Article 54 mentions that revamping or using electronic robots to re-share, share or distribute fake news in the nation can be subject to a fine of up to AED 1 million or a prison term of 2 years or both.
The crypto culture is increasing in the parts of UAE. For example, previously this month, the Dubai Media Office disclosed that the Dubai World Trade Centre (DWTC) will become a cryptocurrency zone and regulator of cryptos in the future.