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UAE To Punish Crypto Scammers With Fines & Jail Time
The penalties reflect Article 48 of the Federal Decree-Law No. 34 of 2021 on Combatting Rumors and Cybercrimes.
Cryptocurrency scams (and crypto scammers) are a global problem, and the cost of this problem reached a staggering $14 billion in 2021 alone.
To discourage crypto scammers from targeting unsuspecting investors, the UAE Public Prosecution has recently announced its decision to punish them with fines of up to $136,124 USD (AED 500,000) and jail terms for the following offenses:
- Promoting goods or services through misleading advertisement or using false data.
- Advertising, promoting, brokering, or dealing in any form, or encouraging the dealing in a virtual or digital currency, a stored value unit, or any unit of payment that is not officially recognized in the UAE or without obtaining a license from the competent authority.
The penalties reflect Article 48 of the Federal Decree-Law No. 34 of 2021 on Combatting Rumors and Cybercrimes, and they’re explained in a video the UAE Public Prosecution shared on social media.
The UAE Public Prosecution is on a mission to increase awareness about the latest laws in the country, and it has issued several similar warnings in the past.
Also Read: 3 Best Cold Storage Wallets For Crypto In 2023
In 2020, for example, the UAE Public Prosecution warned that the use of the Internet Protocol for committing a crime or evading its discovery was a punishable offense in accordance with Article 9 of the Federal Law No. 5 for 2012 on combating cybercrimes and its amendments.
The UAE aspires to become a global crypto hub, and it needs a strong legislature to attract innovators and investors alike.
In February 2022, Sheikh Mohammed bin Rashid Al Maktoum approved the so-called Virtual Asset Law, establishing the Dubai Virtual Assets Regulatory Authority (VARA), whose purpose is to oversee the regulation and authorization of virtual asset activities in Dubai.
It will be interesting to see how much these new punishments will drop the amount of scams we see on a daily basis.
News
Lebanon Ministers Meet Visa Over National Digital Payment Platform
Finance and technology ministers say a comparative study and roadmap will follow before any decision on adopting a model.
Lebanon’s finance and technology ministers met representatives from Visa last week to discuss a proposed unified national digital payment platform for government services, according to a readout from the Ministry of Finance.
The meeting brought together Finance Minister Yassin Jaber, Minister of State for Technology and Artificial Intelligence Kamal Shehadeh, a Visa delegation, and experts from both ministries. Discussion focused on whether Lebanon could establish a single platform through which citizens and institutions would pay taxes, fees, fines and other official transactions electronically, using mobile phones and other digital channels.
The Visa delegation presented examples from countries that have adopted unified government payment platforms, including the United Arab Emirates, Singapore, Estonia and Jordan. According to the readout, the examples were presented as having increased collection rates and expanded financial inclusion.
Talks covered settlement mechanisms, direct transfer to the treasury account, financial reconciliation, risk management, cybersecurity, fees, and an operational model that would involve the private sector. The parties agreed to continue technical and institutional consultations, prepare a comparative study, and develop an implementation roadmap before any decision on adopting a model for Lebanon.
Jaber said the Ministry of Finance had already enabled citizens to pay using credit cards and e-wallets through transfer companies, but described the proposed platform as a further step. He framed the development of electronic payment and collection systems as a priority within the ministry’s modernization plan.
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Shehadeh outlined the citizen-facing concept as a single mobile application through which users could settle obligations to ministries, government institutions and other bodies.
“The idea, in short, is that any citizen downloads an application on their mobile phone, through which they can pay all service obligations for all ministries, government institutions, or those owned by the Lebanese state, and others as well, as the platform is not limited only to state institutions,” he said.
Shehadeh added that the platform would not displace banks and money transfer companies that currently provide collection services to the state, calling it complementary to their work.
