In Austria, financial regulators are investigating OneCoin

austria

It seems handlers of OneCoin now have another country to worry about- Austria.

The country’s top financial services regulator that go by the name Austrian Financial Market Authority, FMA said it has finished its investigation on the activities of OneCoin in the country.

The FMA said it will proceed with a criminal investigation.

According to a news report by a local website Kurier.at, the FMA said:

“We have reimbursed three ads for the suspicion of fraud, infidelity and a pyramid game, among others against the company One Network Services,” says FMA spokesman Klaus Grubelnik. The investigations are conducted by the public prosecutor St. Pölten. Karl Fischer, a public prosecutor, says: “The investigations are still ongoing against unknown perpetrators.” It is about the suspicion of fraud and chain and pyramid play.

Nearby in Germany, a total ban on OneCoin has come into effect. BaFin, the German financial regulator has issued a ‘cease and desist’ order on all OneCoin affiliated companies to dismantle their operation across the country.

BaFin alleged that OneCoin is being used as a money-laundering ring in the country. OneCoin’s major affiliate in Germany is the Steinkeller Brothers. They have since denied any wrongdoing.

While many countries’s are banning OneCoin, it appears the scheme itself might ‘self-destruct’. There are controversies on its claim that it has a functional blockchain (a public digital ledger that shows all transactions in a digital currency). While OneCoin has not been able to prove this, it is also claiming it has a whitepaper that explains the mechanism of the blockchain. The whitepaper is also secret.