With effect from January 2nd 2022, the new rules passed in UAE against Cybercriminals who run cryptocurrency scams will take effect. The rules stipulate that Crypto Cybercriminals could face detention of up to five years and a fine of between Dh250,000 and Dh1 million.
These reforms were introduced in November 2021 as one of the legal reforms by the UAE President, His Highness Sheikh Khalifa bin Zayed Al Nahyan.
Article 48 of the Online Security Law provides that, any person who promotes, advertises or encourages dealing in cryptocurrency, that is not officially recognized in the UAE, or does so without being licensed, is subject to a penalty of detention and, or a fine between Dh20,000 and Dh500,000.
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Running a crypto scam online is also punishable under Article 40 which provides for using online means to fraudulently obtain a benefit and under Article 41 which makes provision for running an online scheme by creating or managing a false portfolio or company to receive or collect funds from the public for investment, management, utilization or development.
Article 40 stipulates a penalty of detention of not less than one year and/or a fine of between Dh 250,000 to Dh 1 million, while Article 41 stipulates a penalty of detention for up to five years and/or a fine of between Dh 250,000 and Dh 1 million for any of the above-mentioned offences.