Fraud in Cryptocurrency and Forex: How to Prove Your Rights?

30 June 2026

If you have fallen victim to fraud through a cryptocurrency or forex platform in the United Arab Emirates, your right rests on a clear legal rule: any entity carrying out a financial activity in the State — including the activities and services related to virtual assets, operating trading platforms, brokerage and portfolio management — may not operate without a licence or approval from the Securities Market Authority under Federal Decree-Law No. 33 of 2025, and conducting such activity without a licence is in itself a crime. You establish your right through four practical steps: verifying the platform’s licensing status in the Authority’s published register; documenting transfers, communications and advertisements; filing a report with the Authority, which may open an administrative investigation and refer the suspected crime to the competent Public Prosecution; bearing in mind that the data and documents the Authority obtains through inspection and investigation constitute legal evidence admissible before the courts.

Have you fallen victim to crypto or forex fraud?

Any delay is not in your favour — start documenting and asserting your right now

☎Contact us now

Crypto and Forex Fraud: How to Prove Your Rights

The Legal Framework: Who Regulates Crypto and Forex in the UAE?

The virtual-assets sector, trading and financial brokerage in the State fall under the regulation of the Securities Market Authority, established by Federal Decree-Law No. 32 of 2025. Federal Decree-Law No. 33 of 2025 on the Regulation of the Capital Market classified “the activities and services related to virtual assets” among the financial activities subject to the Authority’s licensing and supervision, and entrusted the Authority with regulating the trading of virtual assets and setting their registration procedures, prohibiting the trading of a virtual asset in the State unless it has been accepted on the official list of virtual assets. At the level of the Emirate of Dubai, the Law Regulating Virtual Assets in the Emirate of Dubai No. 4 of 2022 established the Dubai Virtual Assets Regulatory Authority (VARA). The Authority also issued Chairman of the Board Decision No. 04/R.M of 2026 on regulating virtual asset service providers and the alternative trading system operator. Forex, in turn, falls within the financial activities subject to the Authority (such as operating trading platforms, brokerage and portfolio management), and may not be conducted without a licence or approval from the Authority.

When Does a Dealing Amount to Fraud Under the Law?

Federal Decree-Law No. 33 of 2025 set out forms of unlawful dealings and acts that warrant punishment, most notably:

Operating without a licence Carrying out any financial activity — including virtual asset services and brokerage — without a licence, approval or registration from the Authority.	Sham trading & false impression Conducting trades to create a false or misleading impression of genuine trading or real demand, controlling the price, or carrying out fictitious transactions.
Misleading data & advertisements Entering incorrect or misleading data in documents, offering prospectuses or advertisements, or distributing them while aware of their inaccuracy.	Spreading rumours Deliberately broadcasting or spreading incorrect or misleading news, information or rumours capable of affecting the soundness or stability of the capital market.
Misusing inside information Dealing on the basis of confidential inside information, disclosing it to others, or inducing others to deal on the basis of it.	Concealing material information Deliberately failing to disclose material information, or submitting forged or altered documents to the Authority.

How to Verify a Platform Is Licensed Before You Deal

Federal Decree-Law No. 33 of 2025 requires the Authority to publish and update a public register that lists licensed persons and the activities they carry out, and also lists persons who conduct any financial activity without a licence, approval or registration. Accordingly, the first means of proving that a platform is unlawful is to show that it holds no licence from the Authority. As to cryptocurrencies specifically, the law prohibits the trading of a virtual asset in the State unless it has been accepted on the official list of virtual assets, so the absence of that acceptance is an indication that the dealing is unlawful.

Steps to Prove Your Right and Recover Your Money

1Document everything — Keep transfer receipts, bank statements, communications, screenshots of advertisements and promises, and subscription agreements; these form the basis of proof, noting that what the Authority obtains through inspection is treated as legal evidence.

2Verify the licence — Consult the Authority’s public register to check the platform’s status, and that the virtual asset is listed on the official list.

3File a report with the Authority — The Authority may conduct an administrative investigation based on a report it receives, and may request data, documents and bank accounts and suspend the suspicious dealing.

4Referral to the Public Prosecution — During its investigation the Authority may refer any suspected crime that comes to light to the competent Public Prosecution; in cases of unlicensed activity it may also close the premises, seize the funds and devices, and refer the violator to the Prosecution.

Penalties Prescribed by Law

Violation	Penalty / Sanction
Criminal penalty (Article 71): operating without a licence; misleading data or advertisements; rumours; sham trading; misuse of inside information; concealment of material information	Imprisonment of no less than one year and a fine of no less than AED 50,000 and no more than AED 250,000,000, or either of these two penalties
Administrative sanctions and measures (Article 65)	Warning and notice; a fine not exceeding AED 200,000,000, or a fine not exceeding ten times the profit gained or loss avoided; suspension of dealing for up to 3 years; revocation of the licence; closure of the unlicensed premises, seizure of its funds and referral to the Prosecution

The Authority may aggravate or mitigate the sanction according to the impact, duration and recurrence of the violation and the violator’s record, and may publish the names of violators and the sanctions imposed on them.

Additional Safeguards for Your Rights

Investor Protection Fund

The law permits the Authority to establish a fund called the “Investor Protection Fund” with independent legal personality and financial liability, whose purpose is to protect investors’ funds from the risks determined by the Authority; the Authority issues a decision on its mechanism and its obligations towards investors and the cases of entitlement.

Amicable Settlement with Enforceable Status

Without prejudice to the right to litigation or arbitration, the law permits resolving disputes relating to its provisions through amicable settlement; the settlement between the parties is recorded before the Authority by a conciliation minute that has the force of an enforceable instrument.

Whistle-blower Protection

The reporting person enjoys the necessary legal protection and, where any harm is suffered, has the right to claim compensation.

Key Legal Periods and Deadlines

10 working days

Period to notify the violator of the sanction or administrative measure from its issuance (Article 69)

Up to 3 years

Period of suspending the violator from dealing in their account as an administrative sanction (Article 65)

Up to 12 months

Period of licence suspension before its possible revocation if the cause of suspension continues (Article 66)

Practical Legal Tips

Deal only with an entity licensed by or holding the Authority’s approval; operating without a licence is a crime.	Keep all documents, communications and advertisements; data obtained through inspection is treated as legal evidence.
File a report with the Authority as soon as you discover the violation, as it may open an administrative investigation based on the report.	Beware of guaranteed-return promises, misleading advertisements and false offering prospectuses; these are forms of unlawful dealing.
Make sure the virtual asset is included on the official list of virtual assets before trading it.	Document the entity’s identity, location and bank accounts to facilitate tracing and referral to the Public Prosecution when needed.

Legal References

1. Federal Decree-Law No. 33 of 2025 on the Regulation of the Capital Market — Articles: 3, 36, 37, 39, 43, 44, 47, 48, 64, 65, 66, 69, 71.
2. Federal Decree-Law No. 32 of 2025 on the Securities Market Authority.
3. Chairman of the Board of the Securities Market Authority Decision No. 04/R.M of 2026 on regulating virtual asset service providers and the alternative trading system operator.
4. Law Regulating Virtual Assets in the Emirate of Dubai No. 4 of 2022.

Victim of crypto or forex fraud? Do not delay in proving your right

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS helps you assess your legal position, prepare your evidence file, file the report with the competent authorities and follow up on the referral to the Public Prosecution to recover your rights.

☎Contact us now and book your specialised legal consultation

Frequently Asked Questions

QIs trading in cryptocurrencies legal in the UAE?

The Securities Market Authority regulates the trading of virtual assets and the activities related to them, and the law prohibits trading a virtual asset in the State unless it has been accepted on the official list of virtual assets; carrying out the related services requires the Authority’s licence.

QHow do I know a forex or crypto platform is licensed?

By consulting the public register that the Authority is required to publish and update, which lists the licensed persons as well as those who carry out a financial activity without a licence, approval or registration.

QWhat do I do if the platform disappears with my money?

Document all transfers and communications, then file a report with the Authority, which may open an administrative investigation, request bank accounts and data, and refer the suspected crime to the competent Public Prosecution.

QCan the money be recovered?

Several tools allow this, including amicable settlement before the Authority by a conciliation minute that has the force of an enforceable instrument, alongside judicial claims, and whistle-blower protection with the right to compensation where harm is suffered.

QWhat is the penalty for operating a platform without a licence?

Carrying out a financial activity without a licence is among the punishable crimes, with imprisonment of no less than one year and a fine of AED 50,000 up to AED 250,000,000, or either penalty, together with administrative sanctions including closure of the premises and seizure of funds.

QDoes reporting to the Authority replace the Public Prosecution?

The Authority has a supervisory and administrative-investigation role, and where a suspected crime comes to light it refers it to the competent Public Prosecution for criminal-investigation procedures; the two tracks are complementary.

QWhat evidence proves my right?

Transfer receipts, bank statements, communications, advertisements and subscription agreements, in addition to the data, documents and electronic records the Authority obtains through inspection and investigation, which are treated as legal evidence.

☎⚡ Any delay is not in your favour — book your consultation nowContact our firm’s team directly on WhatsApp

✓Legal Disclaimer

The information in this blog is of a general educational nature, published within the framework of spreading legal culture and community awareness, and does not constitute legal advice or a legal opinion on any specific matter, nor does it create an attorney–client relationship. For an accurate legal opinion, please contact AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS. In the event of any discrepancy between this translation and the Arabic version, the Arabic text shall prevail.

Our Legal Services in Dubai

AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS provides, in Dubai, services for crypto and forex fraud cases, preparing reports before the Securities Market Authority and the Public Prosecution, building evidence files, virtual-assets regulatory consultations, and representation in trading-platform disputes and fund recovery, through a select team of lawyers and legal consultants.

Our Services Across the Other Emirates

Our services in financial and digital fraud cases and fund recovery extend to Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, Fujairah and all the Emirates of the State, including consultations and representation before the regulatory authorities, the Prosecution and the competent courts.