In the UAE, those involved in cryptocurrency scams will now face up to five years in prison. Not only imprisonment but also a fine of two and a half million to one million dirhams will be imposed. To find out more, let’s move on to detail:

Sheikh Khalifa bin Zayed Al Nahyan has introduced modern legal reforms. Which was enacted almost in November last year. The new cyber law came into force on January 2 this year in UAE.

1.    Penalty for Promoting Unrecognized Currency

Under Article 40, if any person adopts or advertises a currency that is not officially recognized, then this law will apply to that person.

No one can run a company with a false portfolio under this article. In addition, he will be detained for less than a year and will pay a fine of 2.5 million to 1 million dirhams.

2.    Tackling Cryptocurrency Scam

According to ADG’s legal experts, these scams have increased. The DubaiCoin scandal is at the top of the list. Because the company claims to have the official launch of the crypto in Dubai. After research, it was found that they also launched a website to collect data on cryptocurrencies and raise funds. That is why, according to a Dubai government statement in May last year, all these claims have been rejected outright. According to one source, these scams stole more than 7.7 billion in 2021.

3.    Banned Cryptocurrencies in the UAE

The UAE’s central bank does not legally recognize cryptocurrencies. But there are different platform exchanges available for trading. There are no direct restrictions on specific cryptocurrencies. The Dubai World Trade Center Authority and Binance have agreed to collaborate on the development of a global virtual resource industrial hub in the emirate. It intends to implement it more quickly in the GCC region by 2022.

The Most Recent Updates to the Online Safety Act Are Summarized Below

On January 2, 2022, the new Digital Security Law will go into effect. However, this is one of the region’s first comprehensive legal frameworks to deal with the risks linked with the use of web-based technologies. Including the use of cryptocurrencies illegally.

The new legislation replaces the previous one, which was enacted in 2012 and was titled “Against Cybercrime.” With the goal of bettering the public, private companies, and government’s protection from cybercrime.

Overall, the new law covers a broader variety of piracy offenses, as well as offenses involving content that is intended to be used for illegal purposes through technology. For example, terrorism, disseminating false information or news, and other deplorable practices.

So, experts are hoping that this law will minimize the scams of digital currency.