Suspicious Crypto Schemes OneCoin And Bitcoin Revolution Blacklisted By New Zealand’s FMA
Three Suspicious Crypto Platforms Blacklisted In New Zealand’s Effort To Eliminate Potential Scams
The Financial Markets Authority in New Zealand is pursuing an aggressive effort to eliminate crypto platforms that seem to pose a risk to their residents. Primarily, as they’ve been examining these platforms, they haven’t been shy about blacklisting them, and a recent press release shows that three more have been added to the list – OneLife Network Limited, OneCoin Limited, and Bitcoin Revolution Limited.
OneLife Network Limited is associated with OneCoin Limited already, but the reason that they were ultimately blacklisted is due to the fact that they “bear the characteristics of a scam.” One of those characteristics in the way that returns were promised to users, though the FMA also discovered that there were promo events being held for investment opportunities. Acting as an unregistered financial service is illegal in New Zealand.
The third culprit, Bitcoin Revolution Limited, is believed to be a scam too, considering their promises on the website, including the claim that participants can “earn up to $1000 per hour or more.” Furthermore, Bitcoin Revolution Limited had claimed that prime ministers and Treasury officials were already investing in Bitcoin, which was ultimately determined to be false. By reminding residents of these former lies, it appears that the FMA wants to ensure a distrustful stance against the company.
These allegations went much further than just Bitcoin Revolution Limited. Towards the end of 2017, a fake New Zealand Herald website, which was based off the largest newspaper in the country, said that Sir John Key held $300 million in Bitcoin. The former prime minister was also believed to initially have made a $1,000 investment, but he denied the accusation.
Other cryptocurrency scams are already being monitored, according to the New Zealand authorities, and they have warned their citizens to be vigilant. Online scams have accounted for millions, with one investor losing out on $320,000 NZD as a result of fraud in cryptocurrency.
So far, the majority of the blacklisted companies have earned that ban as a result of unrealistic returns or a lack of registration. Based on the path that the FMA has been taking, it looks like additional bans are probably in the works.