[ad_1]
The crypto industry has seen tremendous growth over the past few years, with several countries introducing laws to regulate it.
Cryptocurrencies are digital assets that represent value and can be digitally stored, traded, transferred and even used as a payment tool. Unlike fiat currencies or fiat currencies, cryptocurrencies are not issued by banks or governments, but are based on a decentralized structure that exists in a public network, keeping them out of the control of a central authority.
crypto scam
But with the growing popularity of the cryptocurrency industry globally and in the UAE, there has also been a huge increase in cryptocurrency scams.
Unfortunately, crypto scams are a reality and occur frequently, with scammers using a variety of techniques and methods to defraud buyers and sellers.
In some cases, trades offer high returns without explanation, which can be a sign of a scam.
In other cases, scammers may pose as brokers and offer very lucrative deals to buyers and sellers. Once the scammer convinces both parties that the deal is worthwhile, he may ask both parties to meet in person to close the deal. The buyer usually comes to this meeting with cash and sends his account details to the broker. The broker would forward his own account details to the seller instead of the buyer, who would end up sending cryptocurrency to the scammer’s account.
In another type of scam, buyers buy fake cryptocurrencies. Fake mobile apps that look like real apps, fake encrypted websites, and emails that appear to be real communications from encrypted websites are other forms of scams.
Does the UAE have laws regulating cryptocurrencies?
Yes, there are currently limited laws regulating cryptocurrencies in the UAE. For example, Securities and Commodities Authority Decision No. 23/RM/2020 regulates the issuance, issuance, listing and trading of crypto assets in the UAE.
The Emirate of Dubai has promulgated Law No. 4 of 2022 on the Regulation of Virtual Assets to regulate the virtual asset industry in the Emirate of Dubai.
In addition, the Abu Dhabi Global Market has issued specific regulations for cryptocurrency activities such as cryptocurrency exchanges, custodians, intermediaries, brokers, etc.
You may also be penalized if you engage in crypto scams.
According to the UAE’s cybercrime laws, distributing cryptocurrencies without the permission of the competent authorities can result in 5 years in prison. It can also lead to fines of up to Dh1 million. This is in accordance with article 41 of Federal Decree No. 34/2021 on combating rumours and cybercrime.
Article 41 provides as follows.
“Anyone who calls or promotes competition or cryptocurrencies, or creates or manages a false portfolio or company, receives or receives funds from the public for investment, management, exploitation or development without the permission of the relevant agency, shall be detained for not more than (5) A period of five years and/or payment of a fine of not less than (250,000) two hundred and fifty thousand dirhams and not more than (1,000,000) one million dirhams. The court shall order the recovery of the seized funds.”
In addition, advertising, promotion, mediation or trading in any form of virtual currency or cryptocurrencies not officially recognized by the UAE or licensed by the competent authorities will result in penalties including detention and fines under Article 48 of the Cybercrime Act.
Section 48 of the Cybercrime Act provides as follows.
“Anyone who commits one of the following acts through information network or information technology means shall be detained and/or fined not less than (20,000) twenty thousand dirhams and not more than (500,000) half a million dirhams : 1. Promotion of goods or services through misleading advertising or misrepresentation. 2. Advertising, promotion, mediation or trading in any form or encouragement to trade virtual currencies, cryptocurrencies, stored value units or any Payment units licensed by the competent authority.”
in conclusion
It is crucial to be well informed and informed when dealing with cryptocurrencies to ensure that you do not get scammed out of your funds. Crypto transactions should be conducted using licensed and accredited trading platforms. It is also prudent to confirm the authenticity of a website or online encryption application before providing any personal information or details.
[ad_2]
Source link