Macedonia says OneCoin is a Ponzi scheme

Macedonia says OneCoin is a Ponzi scheme

Without mincing words, Macedonia is beginning to get weary about OneCoin pseudo-digital currency.

For starters, OneCoin is a not a genuine digital currency as it is not traded on any cryptocurrency exchange. Investors of OneCoin basically buy packages which are exchanged for OneCoin tokens. They then hope to profit from a hike in price after some period of time.

The National Bank of Macedonia, the country’s top financial services regulator is backing its earlier stance that it is illegal for anyone to invest in cryptocurrency within the country.

Since OneCoin is not a genuine digital currency, the National Bank of Macedonia said the scheme is an ‘element of a pyramid scheme’.

The regulatory warning issued by the regulator is translated below:

About trading digital currencies

National Bank of Macedonia several times before she pointed to the public to be careful in terms of bids coming through electronic media buying and trading digital (crypto) currencies. The motivation for today’s announcement of the National Bank’s announcement of a free online course Bitcoin and how trading with this digital (crypto) currency. On this occasion, the National Bank said according to current regulations in the country investment by legal and natural persons resident in the Republic of Macedonia in virtual or crypto currencies are not allowed, just as it does not allow the opening of accounts and purchase of securities and derivative financial instruments abroad, except under prescribed exemptions.

Digital currencies take anything wider swing worldwide interest in them increasingly growing, driven by the high and increasing returns, without having a clear picture of what exactly mean investments in crypto currencies and that the risks they carry. Some digital currencies have elements of pyramid schemes, as is the case with Uankoin (OneCoin), and in several countries in Europe were published warnings and investigations were initiated in respect of investments in Uankoin. On the other hand, some kriptovaluti, such as Bitcoin are accepted and applicable in certain countries.

With this announcement, the National Bank reiterates the risks involved in such investments as an asset that provides very high yields, usually carries great risks of loss. Due to the rapid increase of interest in investing in virtual (crypto) currencies, their prices rapidly grow, and financial asset whose value increases rapidly becomes speculative or bubble that sooner or later it will burst. According to information from the Internet at the beginning of 2010 the price of a Bitcoin amounted to 0,003 dollars, while today the price is over $ 2,500 per Bitcoin. Or just a few months of 2017, the price of a Bitcoin increased by close to 300%. The crypto currency changes primarily based on demand for them, so that the market for them is unstable. If the decline in popularity of crypto currency will accordingly reduce their value.

There are other risks in transactions related to the purchase, storage and exchange of crypto currencies on which the National Bank has already indicated ten months, a statement to the public. Trading digital currencies is done through platforms that are usually not regulated and whose rules of operation are subject to frequent changes, or even stop working without warning or explanation. There is no legal protection for funds invested by these software platforms, nor is there a mechanism to compensate the customer, as is the case with the deposits made in the bank that is licensed to establish and operate by the Governor of the National Bank. Purchased crypto currencies kept the virtual account or etc. digital wallet, which is the most frequent target of hacking attacks, which can cause direct loss for investors. Participants in transactions with virtuelnite currencies mostly anonymous transactions themselves can not follow, normally creates suspicion that the transaction may be related to criminal activity, money laundering, terrorism financing and so on. If such suspicions, the competent authority under its statutory powers, can block platform and  to freeze assets, besides financial loss can affect the integrity of the investors.

There seems to be no end in sight into the OneCoin saga. many countries have outrightly banned the scheme while others have raised fraud alerts on the scheme.

In the case of India, more than 20 promoters and affiliates of the scheme are in police custody after they were arrested across the country.