OneCoin warning issued by Bank of Uganda
aUganda is the latest country to issue a regulatory warning against OneCoin.
A notice published by the Bank of Uganda on February 14th all but accuses OneCoin of being a Ponzi scheme.
Among other things, the Bank of Uganda is in charge of ‘supervision and regulation of Financial Institutions’.
Despite offering an investment opportunity within the country, OneCoin has not registered itself as a Financial Instution within Uganda.
The Bank of Uganda are quick to point out that OneCoin is thus ‘conducting business outside the regulatory purview of the BoU.‘
The above entity’s website address is onecoin.eu and it has opened up an office on the Fourth Floor, Mukwano Courts, Buganda Road, Kampala.
Whether this is OneCoin itself attempting to establish a corporate presence in Uganda, or an address used by a Ugandan OneCoin affiliate is unclear.
A Google search of the Mukwano Courts address reveals it is in the middle of a shopping mall.
Specifically referencing OneCoin’s business model, the bank warns
the company is still in its formative stages but it is aggressively encouraging members to buy digital money and promising very high returns and rewards on ‘first-come-first-served’ basis.
“First-come-first-served” refers to the use of newly invested funds to pay off existing investors, which is critical in defining OneCoin as a Ponzi scheme.
Along with other cryptocurrencies, BoU warns
whoever wishes to invest their hard earned savings in Cryptocurrency forms such as One-coin, Bitcoin, Ripple, Peercoin, Namecoin, Dogecoin, Litecoin, Bytecoin, Primecoin, Blackcoin or any other forms of Digital Currency is taking a risk in the financial space where there is neither investor protection nor regulatory purview.
The public is hereby warned that whoever deals with “ONE COIN DIGITAL MONEY” does so at his or her own risk.
The public is strongly encouraged to do business transactions with only licensed financial institutions.
Uganda is the second African nation to issue a OneCoin regulatory warning. Nigeria’s SEC issued a similar warning last month.
Multiple European countries have already issued warnings.
OneCoin is currently under investigation by multiple regulatory bodies, the most prominent of which is probably London police.
Despite over a dozen regulatory warnings issued, action against Ruja Ignatova and OneCoin has yet to be taken.