ASIC Flags OneCoin Limited as Potential Crypto Scam

This is the second crypto scam the regulator has warned against in a week.

Financial regulators across the world constantly monitor their markets, keeping a lookout for potential scams. This Tuesday, the Australian Securities and Investments Commission (ASIC) 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.”

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“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

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Taking a look at its website, OneCoin claims that: “OneCoin is a digital currency, based on cryptography 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.

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