Prohibitions and Warnings from Legal Authorities

Prohibitions and warnings from Legal Authorities/Organizations – sorted on Country / Publication Date. Prohibitions are shown in red
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Country Authority Publication
Date
Publication
Austria
FMA – Financial Market Supervision (FinanzMarktAufsicht) 14 Nov 2016 FMA warns consumers to exercise particular caution in connection with virtual currencies and virtual currency-based business models and investment products.

The range of virtual currencies available on the Internet is constantly increasing, with terms like “digital currency”, “alternative currency”, “crypto currency” or similar constructions being used in combination with the terms for money or currencies. The FMA explicitly advises that such offerings are currently not subject to any form of regulation, and in particular are not subject to supervision by the FMA. Consequently the risk of their misuse for criminal purposes, particularly with regard to fraud or breach of trust is therefore especially high, with any form of legal enforcement or enforcement of claims for damages sustained being particularly difficult or even impossible. The FMA therefore warns consumers to exercise the utmost caution in relation to virtual currencies.
[…]
Other examples involve virtual currencies, where in order to ensure their use to gain high returns information or training materials must first of all be purchased. Many such schemes are based on similar “Multilevel Marketing Plans” (MMPs) as those used by network marketing programs. Such plans are characterised by the fact that every customer simultaneously acquires new customers and sellers, and receives a percentage of their sales on the basis of an elaborate system.
[…]
The FMA also, for example, refers to warnings issued in relation to a specific provider “OneCoin”:
(links to Chamber of Labour (Arbeiterkammer), FSMA Belgium and FCA United Kingdom

Chamber of Labour (Arbeiterkammer) 11 Apr 2016 (Translation from German)
Real loss through virtual money – Onecoin is called the new virtual money machine, which is similar to Bitcoin.
The Chamber of Labor warns against believing promises of quick money.

[…]
Warning of fraud
At Bitcoin, something like a market has actually established itself, with supply, demand and a strongly fluctuating exchange rate to real currencies. Whether Onecoin goes the same way, is doubtful. A free trade has so far not been established despite allegedly great price development, and warnings of fraud are piling up on internet.
Financial Market Authority (FMA) 12 Jul 2017 OneCoin Ltd. […] is not entitled to carry out banking transactions in Austria that require a licence

OneCoin Ltd. […] is not entitled to carry out banking transactions in Austria that require a licence. The provider is therefore not permitted to conduct the issuance and administration of payment instruments such as credit cards, banker’s drafts and traveller’s cheques on a commercial basis, with no limitation applicable to the term of crediting in the case of credit cards (Article 1 para. 1 no. 6 BWG).

Australia
ASIC – Australian Securities & Investments Commission 28 May 2019 OneCoin Limited – ASIC advises this company could be involved in a scam

Do not deal with this business as it is unlicensed in Australia.

The business listed below has made unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) licence or an Australian Credit licence from ASIC.

More information on dealing with investment scams and banking and credit card scams.

OneCoin Limited
6a “P. R. Slaveykov” Sqr.
Sofia 1000
Republic of Bulgaria

Website: www.onecoin.eu
Email: office@onecoin.eu

ASIC – Australian Securities & Investments Commission 28 May 2019 OneLife Network Limited – ASIC advises this company could be involved in a scam

Do not deal with this business as it is unlicensed in Australia.

The business listed below has made unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) licence or an Australian Credit licence from ASIC.

More information on dealing with investment scams and banking and credit card scams.

OneLife Network Limited
2118 Guava Street
Belama Phase I
Belize City
Belize

Website: www.onelife.eu
Email: press@onelife.eu

Belgium
FSMA – Financial Services and Markets Authority 8 Jul 2016 OneCoin not recognized by FSMA

The Financial Services and Markets Authority (FSMA) warns the public that neither OneCoin nor the persons promoting OneCoin have been recognized or authorized by the FSMA. The FSMA once again warns the public of the risks associated with virtual currencies.

Certain people have recently been promoting OneCoin, said to be a virtual currency based on cryptography, in Belgium. The FSMA wishes to warn the public that OneCoin has not received any form of recognition whatsoever from the FSMA. The same is true of the persons who are promoting OneCoin: they do not hold an authorization or any other form of recognition from the FSMA. Generally speaking, there are no specific rules governing virtual money that the FSMA could enforce.

Hence the claims made public by Mr Laurent Louis’ on his Facebook page, namely, that the FSMA had stated that it “n’avait rien trouvé à redire sur le OneCoin” (unofficial English translation, “that it had nothing to say about OneCoin“) and that “pour la FSMA, le OneCoin ne pose aucun problème et n’est nullement illégal ni une arnaque” (unofficial English translation, “for the FSMA, OneCoin does not pose any problems and is neither illegal nor a fraud“) are false and misleading.
These claims suggest or imply that the operations in OneCoin are carried out under conditions laid down by the laws and regulations which the FSMA enforces, whereas in fact these laws and regulations do not apply to such operations.

The FSMA wishes to remind the public of its warnings, issued jointly with the National Bank of Belgium (NBB) in January 2014 and in April 2015, and emphasizes that the risks associated with the use and the holding of virtual money such as Bitcoin which are mentioned in that warning are still relevant. The most important risks are the following:

OneCoin not recognized by FSMA (PDF)
Belize
IFSC – International Financial Services Commissions 29 May 2017 WARNING NOTICE – One Life Network Limited (original link – dead)
WARNING NOTICE – One Life Network Limited (cached version)It has come to the notice of the International Financial Services Commission of Belize (IFSC) that an entity calling itself ‘One Life Network Limited‘, an International Business Company registered in Belize, is conducting trading without first obtaining the required licence from the IFSC.
This entity is not licensed/regulated by the International Financial Services Commission or any other competent authority in Belize to conduct any type of trading business.
One Life Network Limited is therefore directed to cease and desist from carrying on with the said unlicensed activities which constitute an offence under the laws of Belize.
All persons concerned are warned to take note and exercise extreme caution.
IFSC – International Financial Services Commissions 25 Aug 2017 WARNING NOTICE – One Life Network Limited (dead link)

OneLife Network Limited, an International Business Company registered in Belize, is not licensed by the International Financial Services Commission (IFSC) or any other competent authority in Belize to conduct any of the International Financial Services in or from Belize specified under the International Financial Services Commission (Licensing) Regulations, 2007.

All persons concerned are warned to take note and exercise extreme caution.

Bulgaria
FSC – Financial Supervision Commission 12 Oct 2015 Announcement – OneCoin

The FSC informs the potential investors and consumers on the Internet that the activities related to acquisition, trading and settlement with OneCoin are not regulated by the acting European and national legislation in the area of the capital markets. Currently, OneCoin or other virtual currencies are not recognized and are not considered financial instruments under the MFIA and the requirements of the MFIA are not applied to them.

Potential investors and consumers should note that investment in such crypto currencies which already exceed 400 different types is associated with a high risk. In case the organizer of such an activity becomes insolvent, the individuals are not subject of compensation by the Investors Compensation Fund.

Colombia
Superintendency of Corporations 21 Apr 2016 Onecoin Colombia is not monitored by the Superintendence of Companies

(Translated from Spanish)
Bogotá, April 21, 2016. The Superintendence of Companies launched an alert on the use of non-traditional methods to conduct monetary transactions via the Internet.
The warning responds to the appearance of an instrument called “Onecoin”, which is advertised on the Internet, and which is not monitored or regulated by the Colombian authorities.

The Superintendence of Companies recalls that according to the Banco de la República, the only monetary and account unit in Colombia is the peso (notes and coins), so other mechanisms, such as “Onecoin” do not constitute a means of payment of legal tender with unlimited liberating power.

Consequently, the “Onecoin” is not an asset that has equivalence to the legal currency of legal tender in Colombia because it has not been recognized as a currency in the country. Neither is it an asset that can be considered a currency, in accordance with the criteria of the International Monetary Fund, given that it does not have the backing of the central banks of other countries and therefore does not have unlimited liberating power for the extinction of obligations.

“Onecoin” does not appear in the companies legally constituted as multilevel in Colombia, according to the information available to date in the databases of the Superintendence of Companies.

Croatia
CNB – Croatian National Bank 7 Mar 2017 OneCoin product carries many risks

In light of the activities of advertisement and sale of OneCoin, the product presented as a virtual or cryptocurrency, observed in the territory of the Republic of Croatia, the Croatian National Bank finds it necessary to warn the public about certain facts and the possible risks associated with this product.

    • “OneCoin” is not electronic money within the meaning of the Electronic Money Act nor does it present a payment service within the meaning of the Payment System Act;
    • Business entities issuing this type of product and trading in this product have not been authorised by the Croatian National Bank nor are their operations supervised by the Croatian National Bank;
    • The funds invested in this product are not covered by deposit insurance system and the individuals deciding on this type of investment fully bear the risk of loss of the funds invested.

[…]
Bearing in mind the above-mentioned information, we advise citizens to exercise a high degree of caution when deciding on OneCoin product.

Curaçao and Sint Maarten
CBCS – Central Bank of Curaçao and Sint Maarten 28 Mar 2017 Warning notice virtual currencies
CBCS warns consumers to be careful of dealing with virtual currencies (PDF)The Centrale Bank van Curaçao en Sint Maarten (CBCS) warns consumers to be careful of dealing with virtual currencies. CBCS cautions consumers on a series of risks deriving from buying, holding or trading virtual currencies such as Bitcoins, One Coin or other digital value units, also called cryptographic currencies.Consumers should be aware that CBCS does not supervise providers of virtual currencies or investments in virtual currencies. CBCS emphasizes that consumers should be aware of the potential risks of buying virtual currencies. The exchange rates are volatile, there is no central issuing supervised institution that consumers can hold liable should the need arise.[…]
In view of the risks, CBCS advises consumers to take extra precaution when buying and holding virtual currencies. CBCS re-iterates that Bitcoins, One Coin or any other virtual currencies are not supervised by CBCS and fall out of the scope of our rules and regulations in or from Curaçao and/or Sint Maarten. As a result, consumers are not protected through regulation when using virtual currencies as a means of payment and may be at risk of losing their money.
Finland
Poliisi – Police of Finland 4 Nov 2015 National Bureau of Investigation has investigated OneCoin virtual money

(Translated from Finnish)
According to the survey, it would seem that OneCoin’s operations are derived from Bulgaria. Significant amounts of training packages have been paid to the company’s bank account. Packages consist of general economic information, which is easily and publicly available. OneCoin has announced that it only sells financial education.[…]
The National Bureau of Investigation calls for particular caution in the procurement of such services as it is difficult to predict economic and criminal risks. According to KRP’s view, the promises of excessive performance expectations are not realistic.

Germany
BaFin – Federal Financial Supervisory Authority 10 Apr 2017 IMS International Marketing Services GmbH: account freezing and winding-down of unauthorised money remittance business

On 17 and 20 February 2017, the German Federal Financial Services Supervisory Authority BaFin imposed an account freeze on the known to still be active bank accounts which IMS International Marketing Services GmbH, a German limited liability company based in the city of Greven, held in Germany. The administrative action is by law immediately enforceable; it is based on § 4 (1) sentence 4 of the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz – ZAG).

In its decree of 5 April 2017, BaFin ordered IMS International Marketing Services GmbH to immediately cease and wind down its unauthorized money remittance business with investors in “OneCoin” for Onecoin Ltd, Dubai; that decree is based on § 4 (1) sentence 1 ZAG. In case IMS should not abide by the order to cease business, BaFin threatened to impose a coercive fine of 1.5 million euros; for non-compliance with the winding-down order, it would impose a coercive fine of 150,000 euros. By law, the administrative acts, including the threats of coercive fines, are immediately enforceable.

BaFin ordered IMS International Marketing Services GmbH to transfer the remaining bank deposits back to the investors who had made payments to IMS International Marketing Services GmbH most recently, where the bank deposits are not subject to a garnishment.

Background
Onecoin Ltd, Dubai is part of a network of companies that market virtual units, which they declare to be a cryptocurrency, under the “OneCoin” brand using a multi-level marketing structure both globally and in Germany. On behalf of Onecoin Ltd, IMS International Marketing Services GmbH had investors who had bidden to buy “OneCoins” transfer the sales price to various accounts held by IMS International Marketing Services GmbH with different banks in Germany and forwarded the money on behalf of Onecoin Ltd to third parties, based in particular outside of Germany. This kind of financial service is classified as money remittance business as defined in § 1 (2) no. 6 ZAG, which, as a payment service, requires prior authorization by BaFin in accordance with § 8 (1) sentence 1 ZAG. IMS International Marketing Services GmbH did not and does not have the required authorization.

Between December 2015 and December 2016, IMS International Marketing Services GmbH took in, in total, approximately 360 million euros on behalf of Onecoin Ltd. Approximately 29 million euros of this remains in the currently frozen accounts.

BaFin – Bundesanstalt für Finanzdienstleistungsaufsicht 10 Apr 2017 IMS International Marketing Services GmbH: Kontensperre und Abwicklung des unerlaubten Finanztransfergeschäfts (German)
BaFin – Federal Financial Supervisory Authority 18 Apr 2017 Onecoin Ltd, Dubai: Prohibition of involvement in unauthorised money remittance business

Following the cease and desist order to IMS International Marketing Services GmbH (IMS) on 5 April 2017, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) issued on 18 April 2017 a direct order to OneCoin Ltd, Dubai holding that the company is to immediately cease its business activities in Germany insofar as it is involved in the initiation, conclusion and settlement of the unauthorized money remittance business conducted by IMS through the execution of payments to IMS’ accounts and the issuing of payment instructions to IMS.
[…]
OneCoin Ltd, Dubai is part of a network of companies that market units of a virtual currency, which they declare to be a cryptocurrency, under the “OneCoin” name using a multi-level marketing structure both in Germany and around the world.
[…]
OneCoin Ltd is involved in the unauthorized business by virtue of the fact that it had investors make payments to IMS’ accounts and gave payment instructions to IMS.

BaFin – Bundesanstalt für
Finanzdienstleistungsaufsicht
18 Apr 2017 Onecoin Ltd, Dubai: Verbot des Einbezugs in unerlaubte Finanztransfergeschäfte (German)
BaFin – Federal Financial Supervisory Authority 27 Apr 2017 Onecoin Ltd (Dubai), OneLife Network Ltd (Belize) und One Network Services Ltd (Sofia/Bulgaria): BaFin issues cease and desist orders holding the companies to stop own funds trading in “OneCoins” in Germany

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) issued cease and desist orders against Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize, holding the companies to dismantle their internet based “OneCoins” trading system and to end all sales promotion activities in Germany immediately. Today’s cease and desist orders are based on the conclusion that the way Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize have “OneCoins” traded as virtual currency in Germany comes down to Eigenhandel (own funds trading) of financial instruments in the meaning of § 1 (1a) sentence 2 no. 4 of the German Federal Banking Act (“KWG”). Eigenhandel as financial service would have required prior authorization by BaFin according to § 32 (1) KWG.

At the same time, BaFin issued a cease and desist order against One Network Services Ltd, Sofia/Bulgaria for the latter’s involvement in the unauthorized trading of “OneCoins” by Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize.

BaFin – Bundesanstalt für
Finanzdienstleistungsaufsicht
27 Apr 2017 Onecoin Ltd (Dubai), OneLife Network Ltd (Belize) und One Network Services Ltd (Sofia/Bulgarien): Untersagung von Geschäften mit „OneCoins“ in Deutschland (German)
Hungary
NBH – Central Bank of Hungary 10 Dec 2016 Increased risk in virtual currencies

(Translated from Hungarian)
The National Bank of Hungary (NBH) again reminds those who wish to invest in the hope of a high yield that virtual payment instruments (also called cryptovalutas), which are popular on the Internet and which are not legally regulated, are not subject to the supervision of a single central bank or authority (the MNB does not authorize or register) so they can have extremely high risks.In the case of Bitcoin and similar virtual devices that are available for payment, there is a lack of adequate liability, warranty and compensation rules, such as protecting consumers’ interests in the event of abuse.[…]
There are constructions similar to pyramid schemes (eg OneCoin), which seem to make investing in instruments, but in fact, it can only be traded on a closed “stock exchange” operated by the issuer (the organizer of the activity). Promising high returns to the system, new entrants will be organized through the Internet by paying a commission to their former associates from their payments.

NBH – Central Bank of Hungary 9 May 2017 The Market Surveillance Task Force discussed action against OneCoin

(Translated from Hungarian)
The MNB agreed with the Ministry of the Interior and various departments of the police, the tax authorities and the prosecutor’s office about the joint action against the alleged virtual currency of OneCoin, which shows some of the symbols of a pyramid scheme.[…]
The OneCoin construction, similar to a pyramid scheme, seems to be an investment in some kind of assets, but in reality it can only be traded on a closed and not verifiable forum operated by the organizer.
Simply put, for OneCoin currently no real commodity or service can be purchased, the value of the alleged virtual currency and its exchange rate can not be determined objectively.
Promising high returns to the system, new entrants will be organized through the Internet by paying the commission of those who have previously joined (who have a strong financial interest in marketing and recruiting).[…]
Over the past three and a half years, the central bank has written 9 warnings about the extraordinary consumer risks of virtual assets and systems (such as OneCoin and BitCoin) that can be used for payments, and published the same warning of the European Banking Authority (EBA) too.

India
OneCoin Company 13 Jul 2017 Ask Dr. Ruja Live Webinar Session (YouTube link)
“So hmm, as I say, we are speaking to the Indian authority, we have delivered the names of the people who have violated the firm policy. We have warned everybody in India not to do so and I have even stopped the registration process of India yesterday. Until all the Indian leaders have not done another training in compliance with the company standards I will not reopen the market.

Update 29 August 2017: apparently all Indian leaders have completed their training, because registration of new OneLife members by Indian residents is possible again.

Italy
AGCM – Antitrust 27 Feb 2017 Pyramid sales: Antitrust suspends promotion of OneCoin by OneLife (Italian)
Full text (PDF, Italian)

(translated from Italian)
The bulk of the revenue gained by the activity promoted by the affiliates would result not so much from the purchase of the OneCoin virtual currency, but rather from the payment of the fees that consumers have to pay when they join the system. In turn, to reach the earning target, they seem to be required to recruit other consumers. These behaviors appear to be related to the typical dynamics of pyramid sales.
[…]ORDERS
Pursuant to art. 27, paragraph 3, of the Consumption Code and Art. 8, paragraph 3 of the Rules, that the company ONELIFE NETWORK LTD.:
(A) suspends any activity directed at the promotion and dissemination of OneCoin cryptocurrency and associated training packs;

(B) notifies the Authority of the execution of this suspension measure and its procedures within ten days of receipt of this measure by sending a detailed report outlining the measures taken.

AGCM – Antitrust 10 Aug 2017 PS10550 – Pyramid sale and misleading promotion, 2,595,000 euro fine imposed on OneCoin cryptocurrency (Italian)
Full text (PDF, Italian)

(translated from Italian)
The Competition Authority at the conclusion of its investigation, found that the methods used by the company One Life Network LTD with the help of other professionals to promote the purchase of virtual currency OneCoins and training packages sold together with this were unfair in terms of the information given to consumers about the characteristics of the product and its sales system with pyramidal features. The practices in question have ceased in Italy following the suspension measures adopted by the Authority prior to company ONE NETWORK SERVICES LTD and the registrants of websites onecoinsuedtirol.it, onecoinitaliaofficial.it, onecoinitalia.com and then to the companies ONE LIFE NETWORK LTD, Easy Life S.r.l. (Appendix 1 Appendix 2).In particular it was found that the promotional activity was focused on the promise that the consumer, after acquiring a training package, could obtain OneCoins (through a process of transforming the raw currency called mining) and subsequently those virtual coins would increase in value as a result of their dissemination, all elements which were not found in the course of the proceedings. One Life’s business proposal was therefore based on a false, high-profit prospect: for example, the purchase of the €27,530 package would have allowed a value of €3,000,000 after just two years of joining the program.The dissemination of OneCoin took place through a system of pyramid selling since recruiting new consumers was the sole purpose of the sales activities and was strongly encouraged by recognizing various bonuses, the only real and effective remuneration of the program. The purchase of the training kit in fact concealed the entrance fee required to enter the system and convince other consumers of the quality of the product. In fact the cryptocurrency OneCoin, of which it was not possible to verify the existence and consistence, was the pretext for a system that exclusively aimed at (and was supported through) the inclusion of other consumers.The procedure made it possible to ascertain whether the practice was incorrect with regard to the deceptive ways in which the characteristics, terms and conditions of the proposed product were envisaged, and whether the system incorporated a pyramid sale referred to in the Consumer Code Commercial practices in each case misleading.
Therefore, in the light of the evidence collected thanks to the valuable collaboration of Antitrust special unit of the Guardia di Finanza for conducting numerous investigations instructors, the authority concluded the sanctions procedure against the companies ONE LIFE NETWORK LTD (€2 million), ONE NETWORK SERVICES LTD (€500,000), Easy Life S.r.l. (€80,000), as well as against the registrants of the sites onecoinsuedtirol.it, onecoinitaliaofficial.it , onecoinitalia.com. (€5,000 each).

Latvia
FCMC – Financial and Capital Market Commission 11 Mar 2016 (Translated from Latvian)
FCMC warns of OneCoin services rendered

Financial and Capital Market Commission (FCMC) warns of the website www.onecoin.eu and www.esmubagats.lv services, which invite to invest and engage in OneCoin scheme which, under the discretion of the FCMC is modeled after the financial pyramid principles.

FCMC – Financial and Capital Market Commission 11 Mar 2016 Information about financial pyramids

(Translated from Latvian)
A pyramid operation is based only on its ability to attract new members and any financial pyramid founder aims to tangibly benefit from individuals who have joined the pyramid later.
The fate of any financial pyramid fate is known in advance – it ceases to exist at the end of the cash flows, that is, no longer being able to attract new participants. Those participants who have joined the pyramid last will lose their money entirely.

FCMC – Financial and Capital Market Commission 8 Dec 2016 We continue to warn about services provided by OneCoin

(Translated from Latvian)
Financial and Capital Market Commission (FCMC) repeatedly warns against involvement in OneCoin business schemes, which at the discretion of the FCMC are modeled after financial pyramid principles.
Offers are made to engage in various Internet websites (such as www.onecoin.eu) or social sites, as well as OneCoin seminars where people are called to make financial transactions with unlicensed service providers.

Consumer Rights Protection Centre Financial and Capital Market Commission has repeatedly warned about services provided by OneCoin (Latvian)
Luxembourg
Commission de Surveillance du Secteur Financier (CSSF) 23 Aug 2017 WARNING – CSSF (PDF)
WARNING – The Commission de Surveillance du Secteur Financier (CSSF) warns the public that the entity named Onecoin Ltd., also present on social media under the name Onecoin Luxembourg, is not supervised by the CSSF.
Malta
MFSA – Malta Financial Services Authority 18 Apr 2017 The MFSA is concerned about the risks that OneCoin poses to consumers and therefore strongly advises the public and consumers of financial services to exercise extreme caution (PDF format)

The MFSA hereby informs the public that OneCoin is not a currency issued by any Central Bank or by any other public authority. Furthermore the promotors of OneCoin are neither regulated nor authorised by the MFSA.

In this context the MFSA makes reference to a news item published by the UK Financial Conduct Authority entitled “Beware trading virtual currencies with OneCoin” which may be accessed on https://www.fca.org.uk/news/news-stories/beware-trading-virtual-currenciesonecoin and also to a warning published by the European Banking Authority entitled “Warning to consumers on virtual currencies” which may be accessed on: https://www.eba.europa.eu/documents/10180/598344/EBA+Warning+on+Virtual+Currencies.pdf

The MFSA is concerned about the risks that OneCoin poses to consumers and therefore strongly advises the public and consumers of financial services to exercise extreme caution.

Mauritius
Bank of Mauritius 9 Aug 2017 It has come to the knowledge of the Bank of Mauritius (the Bank) that
members of the public are being solicited to invest in ‘OneCoin’, a purported cryptocurrency. (PDF format)

The Bank wishes to inform the public that ‘OneCoin’ and other cryptocurrencies are not issued or guaranteed by the Bank. Users of cryptocurrencies are exposed to risks.The public is advised that exchange platforms for cryptocurrencies are unregulated.
The Bank will not accept any responsibility in case of any loss which members of the public may incur on account of any dealing in unregulated cryptocurrencies.

Netherlands
AFM – Dutch Authority for Financial Markets 26 Sep 2016 Warning from foreign authorities

AFM have not issued warnings by themselves, but refers to warnings from FCA (United Kingdom) and FSMA (Belgium).

New Zealand
FMA – Financial Markets Authority 12 Dec 2018 OneLife Network Limited and OneCoin Limited – Scam warning

TRADING NAME: OneLife, OneCoin
ADDRESS: OneLife Network Limited, 2118 Guava Street, Belama Phase I, Belize City, Belize
OneCoin Limited, 6a “P. R. Slaveykov” Sqr., Sofia 1000, Republic of Bulgaria
WEBSITE: www.onelife.eu, www.onecoin.eu
EMAIL: press@onelife.eu, office@onecoin.eu

REASON FOR WARNING:
We recommend extreme caution before investing with OneLife or OneCoin as we are concerned they bear the characteristics of a scam, including withholding client funds and promising unrealistic returns. We have received information indicating that OneLife and OneCoin are holding promotional events and seminars in New Zealand offering investment services in breach of New Zealand law. If you have invested with OneLife or OneCoin we would like to hear from you. Please contact us on 0800 434 566 or by email questions@fma.govt.nz.

Nigeria
SEC – Securities and Exchange Commission 12 Jan 2017 Public Notice on Investments in Cryptocurrencies and other Virtual or Digital Currencies

The attention of the Securities and Exchange Commission, (the Commission) has been drawn to radio advertisements and other modes of solicitations of the public to invest in cryptocurrencies such as Swisscoin, OneCoin, Bitcoin and such other virtual or digital currencies.

The public is hereby advised to exercise extreme caution with regard to digital (crypto currencies) as a vehicle of investments.

This warning is in consonance with similar warnings issued by capital market regulators and Central Banks across the world over the past few years.

Pakistan
SECP – Securities and Exchange Commission of Pakistan 16 Apr 2017 Warning concerning investment in cryptocurrencies such as Bitcoin, Swisscoin, OneCoin (dead Facebook link)

It has come to the notice of Securities and Exchange Commission of Pakistan (SECP) that some persons, companies or entities are offering investment in cryptocurrencies such as Bitcoin, Swisscoin, OneCoin and such other virtual or digital currencies.

The public is hereby advised to exercise extreme caution with respect to digital (crypto currencies) as a vehicle of investments. Please be informed that none of the persons, companies or entities promoting cryptocurrencies has been recognized or authorized by SECP or by other regulatory agencies in Pakistan to receive deposits from the public or to provide any investment or other financial services in or from Pakistan.

The public should also be aware that any investment opportunities promoted by these persons, companies or entities are risky or can be a fraudulent pyramid scheme. There is no protection available to investors in these virtual currencies from financial losses if the virtual currencies fail or the companies promoting them go out of business.

Peru
Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones (SBS)
Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS)
11 Sep 2016 Entities not authorized by the SBS

(Translated from Spanish)
The Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS), in response to various queries received and safeguarding the interests of the public, reports the following: 1. The following companies or business schemes do not have the authorization of the SBS to carry out activities to attract money from the public:
– Pay Diamond
– Bitshare
– Bit Global Bank / Bit Global Cash
– One Coin
– Coin Space
– MMM Global / MMM Peru
– Seven Opportunity2. It is recalled that, in accordance with article 11 of Law No 26702, General Law of the Financial System and the Insurance and Organic System of the Superintendency of Banking and Insurance, any natural or juridical person that intends to receive or receive money from third parties, in the form of a deposit, mutual or any other form, require the prior authorization of the SBS.

Poland
Office of Competition and Consumer Protection 13 Sep 2016 Launched official investigation into OneCoin

(Translated from Polish)
On the other hand, in view of the art. 7 of the Act of 23 August 2007 on Counteracting Unfair Market Practices (Journal of Laws of 2016, item 3), the Office of Competition and Consumer Protection, by decision of 16 May 2016, opened an investigation among others to identify the entity or entities responsible for the organization of OneCoin and how it operates. This procedure is still pending.Currently, the National Prosecutor’s Office is gathering further information on the mechanism of functioning of the OneCoin financial project. These actions seek to clarify whether there is a reasonable suspicion of the offenses committed by the persons involved in the project. In case of disclosure of circumstances indicating this kind of suspicion, preparatory proceedings will be initiated in this case.

Rwanda
National Bank of Rwanda 30 May 2019 PUBLIC NOTICE: Warning against Pyramid Schemes, Network Marketing Programs and Scam Coins
May 30,2019 – The National bank of Rwanda (BNR) has been alerted of the existence of investment scam activities operating in Rwanda (through locally registered businesses or from abroad through online platforms). These scams take the form of active pyramid schemes, pyramid scheme, multiple level marketing or cryptocurrency issuance through fake initial coin offerings (crypto scam). Examples of such schemes that have come to the attention of the BNR include Supermarketings Global Ltd, 3 Friends System (3FS) Group Ltd, OneCoin or Kwakoo (OnyxCoin) to name a few.
12 Sep 2017 UOKiK warns: OneLife Network can be a financial pyramid.

(Translated from Polish)
[…]
The benefits depend on the introduction of other consumers into the system.
[…]
The President of the Office of Competition and Consumer Protection conducts proceedings against OneLife Network Limited from Belize. The company encourages the purchase of OneLife or OneAcademy educational packages, offering the opportunity to receive material benefits for introducing other people to the system. Along with the purchased educational package, the consumer receives tokens. Thanks to them, he can acquire OneCoin cryptocurrency. Packages cost from 110 euros to 27 500 euros. Each of the consumers who persuades other people to buy educational packages is appropriately rewarded – a hierarchical structure is created in which withdrawals are possible, as long as further participants continue to join.UOKiK warns: the system developed by OneLife Network can be a pyramid because:
– The consumer buys an education package in exchange for the possibility of obtaining material benefits;
– These benefits depend on the introduction of other people into the system operated by OneLife Network.A pyramid promotional system, i.e. financial pyramid is forbidden
[…]

Portugal
Banco de Portugal (Bank of Portugal) 27 Nov 2017 Entities that are not authorised to accept deposits or other repayable funds: OneLife Network Limited, OneCoin Limited and One Network Services Ltd

Banco de Portugal warns that OneLife Network Limited (Belize), OneCoin Limited (Dubai) and One Network Services Ltd (Bulgaria), acting in their own name or through third parties, under the trading name “Onecoin” and “Onelife”, are not on this date and never were authorized – in Portuguese territory – to accept deposits or other repayable funds (nor to carry on any other financial activity subject to the supervision of Banco de Portugal).
The acceptance of deposits or other repayable funds as envisaged in Article 4 (1) (a) of the Legal Framework of Credit Institutions and Financial Companies (approved by Decree-Law No 298/92 of 31 December 1992), may only be performed by authorised undertakings, as laid down in Article 10 of the Legal Framework, whose list is available for consultation on Banco de Portugal’s website.

Samoa

Central Bank of Samoa 21 Mar 2018 warning on onecoin cryotocurrency (sic)

In whom do we trust? Do you trust the money (legal tender or paper money and coins) issued by the Central Bank of Samoa (“CBS”)? Or do you trust cryptocurrency investments such as OneCoin or Bitcoin (not legal tender) using middlemen and agents promoting it, which is not regulated by law? CBS has therefore issued a warning over the rising number of cryptocurrency promotions taking place here in Samoa.

It has come to our attention that there are promotions such as Onecoin cryptocurrency that are currently being promoted in Samoa. How it works is that people are encouraged to sign up an account and purchase a package of tokens, these tokens can then be used to invest in a cryptocurrency, as the value of the cryptocurrency goes up, so too will your proposed reward. In essence, you invest in the cryptocurrency and are guaranteed a substantial return on the rewards in a certain period of time.

CBS advises that such a scheme is very very risky and people who invest in it stand to lose their investment. The great risk here is that once these funds are lost then there is a huge possibility that these funds will never be recovered. CBS does not endorse this cryptocurrency venture due to the high risks that it poses to unsuspecting people.

Central Bank of Samoa 3 May 2018 Central Bank of Samoa blocks all OneCoin cryptocurrency transactions (PDF)
The Central Bank of Samoa (CBS) has issued a directive to all financial institutions (predominantly Commercial Banks and Money Transfer Operators) to block all foreign exchange transactions related to Onecoin/ Onelife cryptocurrency promotion.

It has come to our attention that there are still a large number of people wanting to remit or transfer money out of Samoa to invest in this Onecoin cryptocurrency promotion. This is despite warnings by CBS that there is a very high risk that Onecoin cryptocurrency promotion is a pyramid scheme (an illegal money making investment).

Under the Exchange Controls Regulations 1999 no one shall take money out of Samoa without the approval of the CBS, therefore any transaction that involves money leaving Samoa must first be approved by the CBS.

As a result the CBS has decided to block all approvals for any transactions relating to the Onecoin cryptocurrency. This also ensures the protection of Samoa’s foreign currency reserves, which is at risk due to the high number of people wanting to remit money overseas for this get rich quick scheme.

This will remain in place until the CBS has assessed that there is no longer a risk to the public and our economy.

Central Bank of Samoa 25 Apr 2019 Beware OneCoin operations, Central Bank warns
The Central Bank of Samoa, through its Financial Intelligence Unit, recently received a spontaneous intelligence report from the New Zealand Financial Intelligence Unit (NZFIU) regarding the OneCoin operations. The 124 page Intelligence Report notes the following main elements:

1. OneCoin is labelled as a “Hybrid Ponzi-Pyramid Scheme” because the scam contains ingredients of both types of scams – Ponzi Scheme and Pyramid Scheme.

2. Because of the CBS prohibition on all OneCoin transactions in May 2018, NZFIU have formulated the view that this propelled the financial problem in NZ. That is, OneCoin has circumvented Samoa’s financial system (because of our blockages on all OneCoin transactions at all Financial Institutions in 2018),and have opted to use the NZ Financial System to conduct their businesses and transfers.

3. NZFIU have estimated that $3.5m NZD was transferred out of NZ.

4. The target of OneCoin is through the Churches. There are two large churches that were used in OneCoin operations. These two Churches, although originated in Samoa, have branches in New Zealand and Australia, thereby affecting the Pasefika community. This is why NZFIU have formulated the view that public education on the issue would be futile because the Church Ministers are the promoters, and they are held out to be trustworthy, hence,people of the congregation will follow suit.

5. There are a number of Samoan individuals implicated in the report, and they have conducted transactions using either Samoan, Australian or NZ banks. These individuals are currently under scrutiny and potential investigation. The offence of money laundering is now a maximum of 15 years imprisonment, or a maximum fine of $1 million tala, or a combination of both.

6. Some of our Money Transfer Operators (“MTOs”) have also been implicated, which we will not be naming at present. However, we will be monitoring them closely and considering whether further action may be taken in light of the detailed report by NZFIU, which is a confirmation of the information that we already possess.

7. The Bank Accounts of churches may have also been used as vehicles for these transfers, such as Worship Centre and SISDAC: here in Samoa, New Zealand and Australia. These accounts are supposedly compromised.

Advice to the Public
8. Any person or organization or entity that conducts any cryptocurrency/investment presentations, workshops or dealings without the prior approval of the Central Bank, commits and offence and may be subject to criminal prosecutions and convictions to a fine and/or an imprisonment term.

9. Any of the hotels or organizations that hosts any of these cryptocurrency investments/workshops/dealings without the prior approval of the Central Bank may also be liable as a party to any of these criminal proceedings as outlined in paragraph 8 above.

10. Please contact the Financial Intelligence Unit at telephone numbers 34-121 or 34-194 for any further information on this.

Singapore

MAS – Monetary Authority of Signapore 21 Oct 2016 Investor Alert List
The Investor Alert List provides a listing of unregulated persons who, based on information received by MAS, may have been wrongly perceived as being licensed or authorised by MAS. The information published on the Investor Alert List is based on what was known to MAS at the time of publication. This list is not exhaustive and will be updated.
 
OneCoin; OneLife; OneLife Network; ONE Remittances;
OneAcademy; OneCoin Exchange; OneForex; CoinCloud;
OneWorld Foundation; DealShaker; OnePay and One Concept Pte. Ltd. (UEN 201615793N)
Singapore Government 25 May 2018 Are digital tokens such as cryptocurrencies a simple, safe, and sure-fire way of making money?

Exposure to hackers and fraud, insufficient secondary market liquidity

What else could jeopardize my digital token investment?

Your digital tokens are stored in a digital wallet. Similar to digital token intermediaries, the digital wallet could be hacked. You could lose all your digital tokens as a result.

On top of that, fraud has already occurred with companies that claim to offer digital token-related products and services. Initial coin offerings disguised as Ponzi schemes are not uncommon. Platforms like OneCoin and BitConnect have been shut down for their pyramid schemes, with BitConnect’s price crashing from $452 to $9.

Other fraud cases see pump-and-dump maneuvers, where the price of a digital token is artificially inflated by insiders through false and misleading exaggerations. When the price reaches a feverish peak, these insiders then cash out en masse, all at once, leading to a price collapse.

Finally, there is also the risk that you may not be able to exit your digital token investment easily. There may not be enough active buyers and sellers in the secondary market for digital tokens. You might never get the chance to cash out and liquidate your investment.

Singapore Police Force 10 Apr 2019 Two men charged for promoting multi-level marketing scheme involving a purported cryptocurrency, OneCoin

In the first case of its kind, following investigations by the Commercial Affairs Department, two men have been charged in court on 10 April 2019 for promoting a multi-level marketing scheme involving a purported cryptocurrency, OneCoin. One of them was also charged for incorporating a company, One Concept Pte Ltd, to promote the multi-level marketing scheme.

Local residents participated in the scheme by buying online educational courses bundled with promotional tokens. The promotional tokens could be used to ‘mine’ for OneCoins. Participants who brought in new participants were also entitled to overriding commissions in contravention of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.

The supposed cryptocurrency OneCoin is purportedly founded by a Bulgarian, and has several features that are similar to Bitcoin. Several countries, including New Zealand[1], have issued warnings to the members of the public against having involvement with OneCoin. The United States have termed OneCoin a fraudulent cryptocurrency, and charged persons in connection with OneCoin[2].

Members of the public are advised not to participate in or promote any multi-level marketing scheme involving OneCoin or One Concept Pte Ltd. Promoters of the scheme involving OneCoin may be subjected to prosecution under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act. Each charge carries a maximum imprisonment term of 5 years, and/or a maximum fine of $200,000 under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.

Sweden
Lotteri Inspektionen – Swedish Gambling Authority (Gaming Board) 27 Jan 2016 OneCoins activities reported to police for alleged breach of Lotteries Act

(Translated from Swedish)
The Gambling Authority has notified the police of OneCoin’s operations in Sweden for suspected violations of the lottery laws through the organization of chain letters.
The Gambling Authority, on 22 January 2016, has those responsible for the OneCoin business concept in Sweden reported to the police for suspected violations of the lottery laws through the organization of chain letters.The Gambling Authority believes that the concept of OneCoin is based on recruiting new participants to increase participants’ profits. Our overall assessment of the business is that there is reason to assume that OneCoin is a chain letter game or the like.

Skatteverket – Swedish Tax Agency 2018 Does OneCoin count as a cryptocurrency? The Swedish Tax Agency’s view is that onecoin is basically a pyramid game

(Translated from Swedish)
The Swedish Tax Agency’s view is that onecoin is not a cryptocurrency. The Swedish Tax Agency’s view is instead that onecoin is basically a pyramid game. Pyramid games are treated fiscally as a lottery.

A lottery win is tax free if the lottery is organized within the EEA. Profit in other lotteries is taxable income. Expenses to participate in lotteries must not be deducted.

The Swedish Tax Agency’s view is that onecoin is organized outside the EEA. You should therefore record income from onecoin as income from capital as a profit in a foreign lottery. You may not deduct losses.

If you have been compensated for networking (bonus or commission) and have received both cash and a certain amount of onecoins, the Swedish Tax Agency is of the opinion that it is only the cash part that you should directly assume as income from capital. If you then receive compensation for the onecoin you have received, you should include this as income of capital as a win in a foreign lottery.

Thailand
BOT – Bank of Thailand 26 Apr 2017 No. 18/2560 – Information about Onecoin and other similar electronic information units (PDF format)
(Translated from Thai)

It is inviting people to invest in an electronic data unit called Onecoin, claiming to be a globally used digital currency.

The Bank of Thailand (BOT) would like to clarify as follows:
1. Onecoin is not money that can be used to pay debts under Thai law. Currently no country accepts or certifies that Onecoin is legal.
2. In regard to holding or investing in electronic data units that are not yet certified and cannot legally be used to pay debt, people should be careful. Study the information and details thoroughly, because there is a risk that the value of these electronic data units will fluctuate or rapidly deteriorate and may serve as a channel for fraud and deception, especially if there is advertising that it is a financial product that will provide high returns if more members are found.

Uganda
BoU – Bank of Uganda 14 Feb 2017 Warning to general public about ‘One Coin Digital’ Money operations in Uganda

Bank of Uganda (BoU) wishes to notify the general public that the entity “ONE COIN DIGITAL MONEY” is not licenced by the BoU under the Financial Institutions Act, 2004 and is therefore conducting business outside the regulatory purview of the BoU.

The above entity’s website address is www.onecoin.eu and it has opened up an office on the Fourth Floor, Mukwano Courts, Buganda Road, Kampala. The company is still in its formative stages but it is aggressively encouraging members to buy digital money and promising very high returns and rewards on ‘first-come-first-served’ basis.

United Kingdom
FCA – Financial Conduct Authority 26 Sep 2016 Beware trading virtual currencies with OneCoin (original link – dead)
Beware trading virtual currencies with OneCoin (cached version)

We believe consumers should be wary of dealing with OneCoin, which claims to offer the chance to make money through the trading and ‘mining’ of virtual currencies.OneCoin markets itself as ‘a digital currency, based on cryptography’. It claims to have a finite amount of currency units which means it is unaffected by factors such as inflation, and that it is not bound by a central bank.Why we are concerned
The City of London Police are currently investigating OneCoin. If you believe that you have been a victim of fraud in this regard, or have had dealings with OneCoin, then please contact Action Fraud (link is external) or telephone them on 0300 123 2040.This firm is not authorised by us and we do not believe it is undertaking any activities that require our authorisation. However, we are concerned about the potential risks this firm poses to UK consumers.As OneCoin is not authorised, consumers who deal with it will have no protection from the Financial Ombudsman Service or the Financial Services Compensation Scheme.

United States
CFTC – U.S. Commodity Futures Trading Commission 17 Sep 2015 http://www.cftc.gov/PressRoom/PressReleases/pr7231-15

CFTC orders Bitcoin options trading platform operator and its CEO to cease illegally offering Bitcoin options and to cease operating a facility for trading or processing of swaps without registering.

In first action against an unregistered Bitcoin options trading platform, CFTC holds that Bitcoin and other virtual currencies are a commodity covered by the Commodity Exchange Act.
[…]
Aitan Goelman, the CFTC’s Director of Enforcement, commented: “While there is a lot of excitement surrounding Bitcoin and other virtual currencies, innovation does not excuse those acting in this space from following the same rules applicable to all participants in the commodity derivatives markets.”
[…]
Under Section 4c of the CEA and Part 32 of the CFTC’s Regulations, commodity option transactions must either be conducted in compliance with provisions of the CEA or Regulations otherwise applicable to swaps, or conducted pursuant to Regulation 32.3, the “trade option” exemption. In the Order, the CFTC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities.

OneCoin company 6 Oct 2015 Facebook @OneCoinOfficialPage and message in onelife.eu backoffice (referring to CFTC announcement mentioned above)

Dear Member,
On September 17th, 2015 the CFTC defined Bitcoin and all other legitimate cryptocurrencies as commodities, and put them all under the same regulations.

http://www.cftc.gov/PressRoom/PressReleases/pr7231-15

This is a great step towards making cryptocurrency more legitimate and tangible as well as more tradeable.
OneCoin examines the new developments with our legal team – if and what licenses will be needed for the company to operate and respect all rules and new regulations. We also strive to register with the SEC in the next time.

Therefore until all matters are clarified, we need to temporarily suspend new registrations from the USA. OneCoin trading will be also restricted for this time period. We also kindly ask all our affiliates to not market the concept during events and through other media.

Please, stay posted for all new developments! We are looking forward to bring OneCoin to the next level!

Regards, The OneCoin Team

OneLife company 31 Jan 2017 OneLife Network Official Statement (in onelife.eu backoffice)

Dear OneLife Members,
In light of recent rumors and in order to ensure we maintain the transparency and high standards we have toward our global family, the OneLife Team has found it necessary to issue the following statement concerning the company development and operational strategy.
This statement comes following an increasing and active interest over the last couple of weeks concerning the opening of the US market for registrations and operation. Despite its potential, we would like to reiterate the fact that our company is not planning to enter the US market and registrations from there are still not allowed./b>