Australia’s Securities Regulator Says Better Late Than Never, Warns Investors Of OneCoin Cryptocurrency

Australia’s Securities Regulator Warns Investors Against OneCoin cryptocurrency

There has been an increase in the number of projects being launched across the cryptocurrency field. While some of these projects are totally legitimate and developed to revolutionize the world, some of the blockchain projects are outright scams hence the skepticism by the new investors coming into the ecosystem. One popular cryptocurrency in Australia is facing a “scam-call” by the authorities and financial regulators who claim the project is not registered in the country.

Is OneCoin Involved In A Scam?

A report from the Australian Securities and Investments Commission (ASIC) on Tuesday warns investors to be cautious while dealing with OneCoin. This becomes the latest government/regulatory authority to issue a Ponzi scheme alert on OneCoin following Finland’s prosecution of the affiliates, Singapore arresting the coin’s promoters and Poland’s recent tracking of the stolen funds.

ASIC: “OneCoin Could Be A Scam”

The ASIC statement states that the project is not licensed in the country hence investors should ward off investing, trading or dealing with the company. The statements further states,

“ASIC advises this company could be involved in a scam. Do not deal with this business as it is unlicensed in Australia.”

OneCoin’s official website, however, shows the company is registered in 6a “P. R. Slaveykov” Sqr, Sofia 1000 in the Republic of Bulgaria. No official document or response has been offered to us yet despite our calls to the company.

The ASIC claims OneCoin lacks two major licenses to operate financial and investment services in the country namely – current Australian Financial Services license and an Australian Credit license, both offered by the ASIC.

A Tarnished Name And History

The company was founded back in 2014 and raised reportedly over $3 billion dollars, a feat which earned the cryptocurrency a place in the biggest crypto scams in history. The scam runs through 2017 before investors lost their funds following the collapse of the company.

Since the collapse, OneCoin has received a number of lawsuits from ex-clients, churches have denounced any association with the token and the leader of the Ponzi scheme arrested.

With such scams happening in the cryptocurrency industry every other week, the regulation efforts by governments and financial authorities offer the industry a better environment for it to grow.

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