ASIC Flags OneCoin Limited as Potential Crypto Scam

Financial regulators across the world constantly monitor their markets, keeping a lookout for potential scams. This Tuesday, the Australian Securities and Investments Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices. ASIC does not regulate business or register business structures, only business names. One of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies. These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions. What is ASIC Responsible For?The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement. To this end, the Commission provides a license to each Financial Services provider. ASIC tests and assesses the qualification and experience of Financial Advisors. An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients ASIC monitors the behavior of Financial Advisors and can access fines and remove or suspend their license. The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to: All orders, trades, and quotes that are processed and circulated by the trading engine All messages related to trading sessions, product price and status They are closely monitoring all online and day trading The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices. ASIC does not regulate business or register business structures, only business names. One of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies. These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions. What is ASIC Responsible For?The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement. To this end, the Commission provides a license to each Financial Services provider. ASIC tests and assesses the qualification and experience of Financial Advisors. An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients ASIC monitors the behavior of Financial Advisors and can access fines and remove or suspend their license. The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed. To monitor trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System. This means brokers and other relevant bodies in the registry must allow daily access to: All orders, trades, and quotes that are processed and circulated by the trading engine All messages related to trading sessions, product price and status They are closely monitoring all online and day trading Read this Term) has just done that and flagged OneCoin Limited as suspicious.

According to the warning published today via its MoneySmart portal, the Aussie regulator has advised consumers to not deal with OneCoin Limited as it is not licenced to operate in Australia and “could be involved in a scam.”

“The business listed below has made unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) licence or an Australian Credit licence from ASIC,” the warning states.

In order to help consumers avoid this potential scam, the watchdog has provided the following details:

Name: OneCoin Limited

Address: 6a "P. R. Slaveykov" Sqr., Sofia, 1000, Republic of Bulgaria

Website: www.onecoin.eu

Email: office@onecoin.eu

Taking a look at its website, OneCoin claims that: “OneCoin is a digital currency, based on Cryptography Cryptography Cryptography is the mathematical field that was used to develop the protocol for the Bitcoin network. It has since been utilized in the formation of other blockchain-based cryptocurrency networks. In its most basic form, cryptography allows for the creations of mathematical proofs that can be used to provide high levels of digital security. More specifically, this entails the practice and study of techniques for secure communication in the presence of third parties. Cryptography helps analyze and model protocols that prevent third parties or the public from reading private messages. This was a substantial innovation for various aspects in information security such as data confidentiality, data integrity, and authentication.Cryptography as a Double-Edged SwordThe growth of cryptographic technology space has led to several legal issues in the information age as parties grapple its significance and utility.For example, cryptography's potential for use as a conduit or tool for espionage and sedition has led many governments to reign in its influence.This is hardly unwarranted, given the raw potential of this field and how poorly its understood by many.Conversely, cryptography also plays a major role in digital rights management and copyright infringement of digital media. Within the cryptosphere, cryptography is used to make it impossible for a hacker to spend funds from another user’s wallet without having access to their private keys.Cryptography also makes changes to the blockchain nearly impossible, a term known as immutability.Outside of the cryptosphere, cryptography is used in online commerce and banking, and in encryption. It remains to be seen how well embraced this technology or field will be moving forward. Cryptography is the mathematical field that was used to develop the protocol for the Bitcoin network. It has since been utilized in the formation of other blockchain-based cryptocurrency networks. In its most basic form, cryptography allows for the creations of mathematical proofs that can be used to provide high levels of digital security. More specifically, this entails the practice and study of techniques for secure communication in the presence of third parties. Cryptography helps analyze and model protocols that prevent third parties or the public from reading private messages. This was a substantial innovation for various aspects in information security such as data confidentiality, data integrity, and authentication.Cryptography as a Double-Edged SwordThe growth of cryptographic technology space has led to several legal issues in the information age as parties grapple its significance and utility.For example, cryptography's potential for use as a conduit or tool for espionage and sedition has led many governments to reign in its influence.This is hardly unwarranted, given the raw potential of this field and how poorly its understood by many.Conversely, cryptography also plays a major role in digital rights management and copyright infringement of digital media. Within the cryptosphere, cryptography is used to make it impossible for a hacker to spend funds from another user’s wallet without having access to their private keys.Cryptography also makes changes to the blockchain nearly impossible, a term known as immutability.Outside of the cryptosphere, cryptography is used in online commerce and banking, and in encryption. It remains to be seen how well embraced this technology or field will be moving forward. Read this Term and created through a process called 'mining.' Just like the serial number on a paper bill, each digital coin is unique.”

“OneCoin is the first cryptocurrency that is easy to mine, trade and use. No complicated hardware or advanced knowledge is needed. The centralized model protects its members' safety and ensures compliance on AML,” the website states.

Without creating an account, it’s not entirely clear what the function of the website is, except for an advertisement of the cryptocurrency.

ASIC Remains Vigilant with Crypto Scams

OneCoin Limited is the latest entity to be flagged by ASIC. As Finance Magnates reported just last week, it published a warning against Dartalon Ltd, which also goes by the name of GFC Investments.

According to the statement, similar to OneCoin Limited, the regulator believes that the entity could be involved in a scam and warns explicitly that consumers should not deal with this business as it doesn’t have the necessary license and authorization to be offering financial services in Australia.