UK Authority Warns Against Using OneCoin

By September 27, 2016Bitcoin Business

Read a great story for your favorite cryptocurrency? Post it on CoinUpVote and we might write about it on CCN.LA ! The Financial Conduct Authority, citing an investigation by the City of London Police, has issued an official warning, urging users to be wary of trading with the altcoin, OneCoin. In an official warning published yesterday, the Financial Conduct Authority in London has sought to inform users against the trading of OneCoin. The altcoin, which is notably based on a centralized system unlike other cryptocurrencies like Bitcoin, Ether or Monero, has frequently seen accusations of being a pyramid-scheme in the past. The FCA warning read: 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 authority points to an ongoing investigation by the City of London Police, details of which are currently unknown. As OneCoin isn’t authorized in any official capacity, the FCA reminds users that consumer protection will not be able to avail consumer protection. The latest warning comes after a series of similar statements from other European countries. The most notable warning from an official authority – aside from yesterday’s FCA warning – was that of the Belgian Financial Services and Market Authority (FSMA), in July 2016. While indicting all virtual currencies “such as Bitcoin” are associated with “risks”, the FSMA had a particularly pointed warning for users engaging OneCoin. More specifically, the authority sought to admonish claims from OneCoin promoters that the alleged cryptocurrency received recognition from the FSMA. More recently, the Swedish Bitcoin Foundation also released a warning, while taking note of OneCoin’s tremendous growth with billions poured in by investors. The Foundation’s chairman, Mars Henricson, wrote : But Onecoin is not like the crypto currencies compared […]

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