UAE imposes up to Dh1 million fine, jail for virtual assets fraud
The UAE residents have been advised to conduct due diligence before investing their money into any virtual assets due to prevalent uncertainties and risks associated with online investments.
Arshad Khan, the Chief Executive Officer (CEO) of Arabian Bourse, conducting enhanced due diligence is essential for any type of investment decision making, detecting the source of information relied on is crucial as well as the ability to trace it.
He has asked companies to specify clearly why they are raising funds, where the funds will be invested, and what are the payback options. “Who is the custodian of the funds and who is regulating the business for which the funds are being raised are some other due diligence checks that investors should do before investing their hard-earned money,” he added.
Currently, Abu Dhabi Global Market and Securities & Commodities Authority are the only authorities in the UAE that regulate digital currencies and other virtual assets.
Eman Pulis, the group founder of SiGMA, also urged residents and investors in the country to source information through reliable and official channels.
In addition, people engaging in cryptocurrency fraud can be fined up to Dh1 million as well as imprisonment in the UAE for violating the regulations.
