Do not invest more money than you can afford to lose.
UK’s regulator, the Financial Conduct Authority (FCA) has published a notice warning investors to beware trading virtual currencies with the global MLM cryptocurrency scheme OneCoin.
OneCoin claims to be a cryptocurrency mining operation and exchange.
“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,” the FCA writes and adds it is concerned this might be a scam.
According to the regulator, the City of London Police are already investigating the scheme and urges those who believe to have been a victim of fraud or have had dealings with OneCoin to contact http://www.actionfraud.police.uk/.
“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,” the FCA says.
Earlier this year some British newspapers reported on the fantastic promises made during the glitzy events held by OneCoin representatives across the world and warned this most likely is a scam.
This is not the first time a regulator takes note of OneCoin either. Earlier this year Belgium’s FSMA warned of it, noting that neither it, nor the persons promoting it are recognized or authorized by the watchdog.
There have also been warnings by the Bank of Hungary from the summer of 2015 and a report to the Swedish police by the local gambling watchdog.
Bulgaria’s Financial Supervision Commission has also put OneCoin on a warning list, clarifying that cryptocurrencies are not regulated in Europe, while Latvia’s watchdog warned it appears to be a Ponzi scheme.
