A cryptocurrency is a digital form of money stored in digital wallets and has a specific value allotted to it. Recently, many cryptocurrencies have shown up in the market, while some are misleading. The scams related to cryptocurrencies have been reported all over the world.
As a part of one of the most significant legal reforms by the President, Sheikh Khalifa, the UAE sought to broaden the horizons of its existing cyber laws and make it stringently punishable. The new legislation has been made to protect the public from online financial fraud.
According to the new legislation, fraudsters that encourage such online cryptocurrency schemes risk up to 5 years in jail and a fine of up to Dh 1 million.
It also addresses fraudulent cryptocurrency adverts that are not recognised by UAE authorities. Article 48 of the Act punishes posting such deceptive advertisements with imprisonment and/or a fine ranging from Dh20,000 to Dh500,000.
The new law also punishes the offenders who create fake e-mail accounts and websites to impersonate people. Such offenders shall either be imprisoned or fined between Dh50,000 to Dh200,000 or both.
The new legislation also punishes the use of electronic robots to spread misinformation imprisonment for a term of two years or a fine not less than Dh100,000 and up to Dh1 million, or both.
The laws and the penalties apply not only to the cybercriminals but also to the members of the general public who promote such misleading cryptocurrencies.
– Shubham Kumar
(Content Writer, WCSF)