onecoin-logoLatvia’s Financial and Capital Market Commission (FCMC) is

an autonomous public institution, which carries out the supervision of Latvian banks, credit unions, insurance companies and insurance brokerage companies, participants of financial instruments market, as well as private pension funds, payment institutions and electronic money institutions.

Part of the FCMC’s duties see them engage in consumer protection, with the regulator yesterday issuing a warning against OneCoin.

According to the FCMC, OneCoin is ‘modeled on pyramid scheme principles‘. The regulator goes on to warn that

unlicensed merchants and other similar organizations are not nationally monitored, and thus the interests of (Latvian) citizens are not protected.

OneCoin is of course not licensed to offer investments in Latvia. This in turn means that soliciting investment from Latvian nationals constitutes “unlicensed business activities”.

Unlicensed business activities, (such as) soliciting deposits or other repayable funds is a criminal offense.

Whether or not the FCMC will take further action against OneCoin and/or local promoters is unclear.

Earlier this week Norway’s Direct Selling Association also labeled OneCoin a pyramid scheme.