In the technology world, like many pros, as there can be, there happens to be also some cons that mostly include the security of data. During the last year, one of the objectives of the cyber attacks was also the cryptocurrency industry which faced some extensive scams and cyberattacks. In addition to this, the most affected stakeholders were investors, whose lost costs reached more than $7.7 billion.
Despite the alerts and notes regarding cybercriminal attacks from the different governments, this concern continues to thrive more. In regards to this major issue, new law jurisdictions have been encountered by the UAE government by commanding more rigorous sanctions. This new regulation initiates more than 5 years in prison, with more than 1 million DH ($272,259) for those who get caught in promoting cyber-criminals.
As a result of safe protection for the citizens due to the major cybercriminal frauds, the government has come up with such a decision, one step closer to a safe crypto-region.
In the past, the cryptocurrency industry was facing the problem of the advertising of shady cryptocurrencies not being recognized by the authorities under the umbrella of cybercrime. However, prior regulations prohibited the advertising of such cryptocurrencies, and the amendments have imprisoned the practice for the first time, hoping this problem of abuse will come to an end.
Apart from the strict law enforcement about cyber-attacks, there’s still a number of citizens who have fallen to these frauds. In the first six months of 2021, citizens of Dubai have been victims of these scams, costing them to lose more than 80 million DH in just that short period of time. This cautioned the UAE police to take some action towards forgery exchange and income-making associated with cryptocurrencies.
What was the Case with DubaiCoin?
Nevertheless, one of the most foremost phishing frauds that hit this city, was the DubaiCoin. The way it trapped investors was through endorsing as one with official backing, and that was the leverage point where investors fell into this scam.
Dubai Coin cryptocurrency was never approved by any official authority.
The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors. pic.twitter.com/Q0HBXfqaDO
— Dubai Media Office (@DXBMediaOffice) May 27, 2021
These financial frauds were caught, as nine individuals from the country were sentenced to ten years in prison earlier in July. Defrauding people out of 18 million DH and getting rich for a very short time was only possible through a bitcoin trading scheme.
In regards to spreading and increasing the fraud awareness of people, there has been a collaboration between Dubai Police and the regulated firm BitOasis. This deal tends to regulate and make the crypto area safer for all the people who are engaged in this entity.
Besides all the above fraud experiences in this city, they have succeeded in implementing a prosperous and resilient crypto structure. This is backed up by the Dubai World Trade Center, which will allow creating a large hub for the sector’s profession, by serving as both a complete crypto area and regulator.