The chicken might have come home to roast for OneCoin investors in China, either on Mainland or Chinese territories where the Chinese government has jurisdictions.
The pseudo-digital currency has just announced that it will exclude all OneCoin investors in China from its initial coin offering, ICO.
The reason is not hard to fathom.
China’s financial services regulator had announced last week that it will disallow henceforth all ICOs as a result of the penchant of its sponsors who mostly use them for money laundering and financial crimes.
To deliver the definitive policy, Chinese authorities through the Peoples Bank of China, PBoC said that said in a statement that ICOs are used to finance illegal activities as well as money laundering and criminal organizations that are hard to track by law enforcement agencies.
As a follow up to the PBoC’s decision, the National Internet Finance Association of China (NIFA) warned its members that ICOs are posing risks to China’s economic stability and that they should stay clear of them.
NIFA said in the statement that:
Recently, various projects that have been raised in the name of ICO (Initial Coin Offerings) have grown rapidly in the country, disrupting the socioeconomic order and creating a greater risk. To protect the legitimate rights and interests of the public, the relevant risk issues are as follows:
First, some institutions at home and abroad use all kinds of misleading propaganda means to ICO in the name of engaged in financing activities, the relevant financial activities without any permission, which is suspected of fraud, illegal securities, illegal fund-raising and other acts. The majority of investors should remain sober, vigilant, beware of being deceived. Once found to have involved in illegal acts, should immediately submit to the public security organs.
Second, due to ICO project assets are not clear, lack of investor appropriateness, a serious shortage of information disclosure, investment activities are facing greater risk. Investors should be calm judgments, be careful to take their own investment risk.
Third, China Internet Finance Association member units should take the initiative to strengthen self-discipline, to resist illegal financial behavior.
To deliver the bad news, OneCoin issued a deceptive statement that:
In order to comply with the recently imposed regulations of the People’s Bank of China, the OneLife Network is informing all users of the OneLife & OneAcademy, that educational courses, related to the ICO activity of OneCoin will not be provided to Chinese members.
For compliance reasons any OneLife educational course sold on the territory of People’s Republic of China will not include any ICO related features and/or materials during the OneCoin ICO campaign.
ONE cryptocurrency is planned to float on a public exchange October, 2018.
It has now become very explicit that OneCoin investors are affiliates in China will have to cut their losses should OneCoin pull through its ‘incredible’ ICO, China and its adjoining territories such as Hong Kong where the Ponzi scheme has the bulk of its investors will be cut out finally from the hope of getting anything out of the scheme.