Prohibitions and warnings from Legal Authorities/Organizations – sorted on Country / Publication Date
Prohibitions in red
|Austria||FMA – Financial Market Supervision (FinanzMarktAufsicht)||14 November 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.
|Chamber of Labour (Arbeiterkammer)||11 April 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 July 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).
|Belgium||FSMA – Financial Services and Markets Authority||8 July 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.
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 (dead link)
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.
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.
|IFSC – International Financial Services Commissions||25 August 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 October 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 April 2016||(Translated from Spanish)
Alert: Onecoin Colombia is not supervised by Superintendency of Corporations (original link is dead)
Following the appearance of a virtual currency instrument called “Onecoin”, the Superintendency of Corporations launches an alert so that the users know the risks that are exposed when they carry out their transactions through these vehicles.
Moreover “Onecoin” does not figure in the companies legally constituted as multilevel in Colombia, according to the information available to date in the databases of the Superintendency of Corporations.
|Croatia||CNB – Croatian National Bank||7 March 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.
|Curaçao and Sint Maarten||CBCS – Central Bank of Curaçao and Sint Maarten||28 March 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.
|Finland||Poliisi – Police of Finland||4 November 2015||(Translated from Finnish))
National Bureau of Investigation has investigated OneCoin virtual money
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.
|Germany||BaFin – Federal Financial Supervisory Authority||10 April 2017||IMS International Marketing Services GmbH: account freezing and winding-down of unauthorised money remittance business|
|BaFin – Bundesanstalt für Finanzdienstleistungsaufsicht||10 April 2017||IMS International Marketing Services GmbH: Kontensperre und Abwicklung des unerlaubten Finanztransfergeschäfts (German)|
|BaFin – Federal Financial Supervisory Authority||18 April 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.
|BaFin – Bundesanstalt für
|18 April 2017||Onecoin Ltd, Dubai: Verbot des Einbezugs in unerlaubte Finanztransfergeschäfte (German)|
|BaFin – Federal Financial Supervisory Authority||27 April 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
|27 April 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 December 2016||(Translated from Hungarian)
Increased risk in virtual currencies
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.
|NBH – Central Bank of Hungary||9 May 2017||(Translated from Hungarian)
The Market Surveillance Task Force discussed action against OneCoin
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.
|India||OneCoin Company||13 July 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 February 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.
|AGCM – Antitrust||10 August 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.
|Latvia||FCMC – Financial and Capital Market Commission||11 March 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 March 2016||(Translated from Latvian)
Information about financial pyramids
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.
|FCMC – Financial and Capital Market Commission||8 December 2016||(Translated from Latvian)
We continue to warn about services provided by OneCoin
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.
|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 August 2017||WARNING – CSSF (PDF)
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 April 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 August 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.
|Netherlands||AFM – Dutch Authority for Financial Markets||26 September 2016||Warning from foreign authorities
AFM have not issued warnings by themselves, but refers to warnings from FCA (United Kingdom) and FSMA (Belgium).
|Nigeria||SEC – Securities and Exchange Commission||12 January 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 April 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 September 2016||(Translated from Spanish)
Entities not authorized by the SBS
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:
2. 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 September 2016||(Translated from Polish)
Launched official investigation into OneCoin
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.
|Portugal||Banco de Portugal (Bank of Portugal)||27 November 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).
|Sweden||Lotteri Inspektionen – Swedish Gambling Authority (Gaming Board)||27 January 2016||(Translated from Swedish)
OneCoins activities reported to police for alleged breach of Lotteries Act
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.
|Thailand||BOT – Bank of Thailand||26 April 2017||No. 18/2560 – Information about Onecoin and other similar electronic information units
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:
|Uganda||BoU – Bank of Uganda||14 February 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 September 2016||Beware trading virtual currencies with OneCoin (dead link)
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
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 September 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.
|OneCoin company||6 October 2015||Facebook @OneCoinOfficialPage and message in onelife.eu backoffice (referring to CFTC announcement as mentioned above)
This is a great step towards making cryptocurrency more legitimate and tangible as well as more tradeable.
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 January 2017||OneLife Network Official Statement (in onelife.eu backoffice)
Dear OneLife Members,