The UAE announces significant penalties for crypto scams
Crypto scams are a real and growing problem, with the total cost to investors being US$7.7 billion in 2021. It comes as no surprise that governments and law enforcement are starting to take the raw cost of this form of crime seriously, and the UAE is the latest to announce tough criminal charges for crypto scams.
Anyone found to participate in or promote cryptocurrency frauds online face up to five years in prison and US$272,000 in fines in the Arab state. These laws will go into effect on January 2, 2022.
The UAE is considered to be a crypto-friendly economy. Just a week ago, the Dubai World Trade Centre (DWTC) was designated as a hub for cryptocurrencies, both as supporter of these assets and a regulator of them.
While this has resulted in the UAE being recognised as one of the world leaders in the space, it also appears to have led to a series of intricate scams that have has a significant impact on the local economy. One of the most significant of these was DubaiCoin, which was launched on the premise that it was an officially-supported coin that could be used to buy goods in-store and online.
Dubai’s government was forced to issue a warning, stating that this coin had no official backing and was actually a scam. These new laws have been designed to target these scams in particular.