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UAE Imposes Jail Time for Crypto Scam Promoters

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Fri, 12/24/2021 - 15:02
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Alex Dovbnya
Shilling unregistered cryptocurrencies may result in a prison sentence in the UAE starting from next year
UAE Imposes Jail Time for Crypto Scam Promoters
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Promoters of cryptocurrency scams will face up to five years in jail starting from January, according to a report by The National. They could also be slapped with fines of up to 1 million dirhams ($272,261).

The move is meant to promote online safety after the cryptocurrency experienced massive growth this year, thus becoming an attractive destination for bad actors who are eager to exploit retailer investors.

New measures penalize the promotion of unlicensed cryptocurrencies, as explained by lawyer Dr. Hassan Elhais. Apart from crypto, they will also apply to those who advertise fake companies.

In July, Abu Dhabi police warned investors against falling for get-rich-quick scams that involve cryptocurrencies.

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Sweeping legal changes

The UAE's new cybercrime law will come into effect on Jan. 2. Notably, it stipulates imposing harsh punishments for publishing and sharing fake news. Spreading rumors during emergencies could result in a two-year prison sentence.

Under the new law, offenders could also face prison time for impersonating another person using a fake account. Defaming someone will be viewed as an aggravating factor.

The cybercrime law is part of the largest legal reform in the history of the UAE that includes over 40 new laws. Its aim is to broaden personal freedoms by decriminalizing extramarital relationships, broadening women's rights and reducing the impact of Sharia law on foreign expats. The legal reform is expected to modernize the country, whose laws often become a source of controversy in the West, and attract new investment.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.