• Regulators in Dubai will jail crypto scammers for five years.
• Crypto-scams in UAE increased over 80 percent in 2021.
Following the rise of crypto-scams in the UAE, various laws have been proposed to combat them, which could concern these criminal organizations. Recently, SCA lawmakers issued an order stating that crypto scammers could face charges of up to five years in prison if caught.
This new law is planned to protect crypto traders in Arab countries against cyber fraud. Since last November 2021, president Sheikh Khalifa has come into force.
UAE issues laws against crypto scammers
The United Arab Emirates has been a new country that has accepted the crypto trade since its popularity increased in 2021. However, this boom has caused adoptions waves among companies and entrepreneurs and has brought various scams. Recently, the UAE was the center of several crypto thefts where over 5.7 billion euros were lost in the present year alone.
Before the UAE issued laws against crypto scammers, the regulatory authority had banned crypto advertising of dodgy tokens. In this way, regulators sought to preserve citizens’ experience when trading cryptos.
According to reports, if the law of zero advertising with cryptos was not followed, the company that manages it would have to pay between 40000 and 100000 euros. So far, the law has been followed exactly, showing that the country is safe to invest in cryptos. The UAE has also fought against false information based on cryptos, so investors do not lose their money on unreliable tokens.
Crypto fraud could end in UAE
Crypto scammers are worldwide, but in Dubai, they have focused their operations on most of 2021. Regulators try to fight against these criminal organizations that all they cause is distrust towards decentralized commerce.
Regulatory agencies are reportedly seeking to catch crypto scammers and send them to jail with a sentence of up to five years. These actions are motivated due to the “DubaiCoin” advertising, which in the end was a scam token.
Crypto scammers have caused great damage in the Arab country, taking over 5 billion euros in 2021. This would be a record if compared to previous years. The modus operandi is based on investments of new tokens that are scams, technology development, Ponzi schemes.
Regulators have not mentioned other laws for or against cryptocurrencies, which leaves room for some plans. While crypto law is passed and enforced in the UAE, the main tokens have risen in price to over 1 percent during the last 24 hours. Bitcoin, which is ranked number one in the crypto market, is trading at $51,710 with a 2.92 percent advance of its price.