LegalVirtual Asset Frauds: UAE Residents are advised to stay alert

June 8, 2021

Virtual Assets have been showing up on the headlines a lot lately.

Investing in Initial Coin Offerings and in cryptocurrencies is highly speculative and basically you can lose all your money, which means you really do need to do your research before investing.

So, the residents and investors are advised to conduct due diligence before investing their money into any virtual assets. Because, the high volatility and risk factor associated with online investments are tremendous.

In fact, Abu Dhabi Global Market and securities & Commodities Authority are the only authorities in the UAE that regulate digital currencies and other virtual assets.

As the regulatory frameworks around the same are still under development, scams and frauds have been on the rise.

Article 11 of the Federal Decree-Law No.(5) of 2012 on combating cybercrimes has stated, those shall be punished by imprisonment for a period of at least one year and a fine not less than Dh250,000 and not in excess of Dh1 million, or either of these two penalties whoever takes over a personal property, benefit, deed or its signature whether for oneself or for other persons and without legal right, by resorting to any fraudulent method or by adopting a false name, or false personation through the computer network, or an electronic information system or any information technology means.

Which means, frauds relating to virtual assets can be imposed with a fine of 1 million and jail.

Follow the law. If not, the law will follow you.    


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Virtual Asset Frauds in UAE

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