Altcoin News

German Regulators Order OneCoin to ‘Dismantle Trading System

OneCoin
OneCoin

An uncalled has been witnessed by entire world from Germany over ongoing crackdown on OneCoin, a digital currency investment scheme widely believed to be fraudulent.

On an immediate call, German Federal Financial Supervisory Authority (BaFin) has issued new cease-and-desist orders to two holding companies connected to OneCoin – Onecoin Ltd, Dubai and OneLife Network Ltd – ordering them to “dismantle their internet based ‘OneCoins’ trading system” and to “end all sales promotion activities” in Germany.

OneCoin is an investment scheme focussed around a purported digital currency, for which packages of “tokens” are sold that can later be exchanged.

It was operating a pyramid scheme on that basis this operation has long been accused, as participants are encouraged by advocates to find other buyers.

Strikingly, the regulator suggested that OneCoin promoters in Germany hadn’t sought permission prior to conducting their activities, a determination that BaFin said spurred the latest cease-and-desist notices.

Cease-and-desist notice to a third entity connected to OneCoin, One Network Services, for supporting the unauthorized sale of OneCoin in Germany had been issued, said BaFin.

The move indicates that Germany is accelerating its efforts to keep OneCoin out of the country. It comes just over a week after BaFin moved to halt the operations of a OneCoin-tied payment processor in Germany, freezing €29m in connected bank accounts.

But Germany isn’t the only country to crack down on OneCoin. Coinpedia reported last week that authorities in India had arrested at least 18 individuals connected to the scheme.

That results into several central banks have also issued warnings, including Thailand’s, according to reports.

 

Originally Featured