UAE’ new rule against crypto scammers, 5 Year Prison & Fine

United Arabian Emirates released its new guidelines against crypto scammers to retard the illegal crypto activities in UAE. 

In the fourth quarter of this year, UAE showed a better interest in crypto and blockchain industry adoption, with better systematic ways to ensure the protection of the investors. 

In the latest, lawmakers introduced a new rule to restrict cybercriminals involved in crypto-related crimes. 

According to the new rule, all crypto-linked scammers will face high fines. If any person found to be involved in the crypto scam, then he will go to prison for up to 5 years and also will be fined AED 1 Million. And this rule will be applicable since 2 January 2022. 

The National News published news regarding this new rule against the crypto scammers and quoted the statement of. Hassan Elhais of Al Rowaad Advocates. 

“As per article 48, posting misleading ads or inaccurate data online about any product will be subject to legal repercussions. The same penalty applies to members of the public who promote cryptocurrencies unrecognized by authorities in the country,” the report added.

As per the report, we can understand very well that it is not only a rule against scams in crypto but it will also involve those people, who will try to use crypto in unfair ways like manipulation through advertisements.

Earlier this, Government officials warned to stop any kind of crypto-related advertisements. But provision against the bad actors was not strict. 

But now, new rules are enough to restrict any illicit activity because new guidelines have the potential to stop those types of activities, which can indirectly manipulate the crypto market. 

“Article 54 states that using or modifying electronic robots to share, re-share or circulate fake news in the country can be subject to a prison term of two years or a fine of up to AED 1 million, or both,” the report added

These steps by the financial regulators of the UAE are really important because UAE is moving toward crypto adoption at the next level. Recently the Dubai media office revealed that Dubai is going to be a crypto hub and also a regulator. 

Read also: Past Dogecoin Creator reveals his Dogecoin holding