Everyone in the cryptocurrency world has come across the name OneCoin at some point. While this MLM company claims to be perfectly legit, they are attracting attention from governments all over the world. Multi-level marketing companies can be legitimate, but OneCoin is raising a lot more questions than answers.
OneCoin is on The Belgian FSMA Radar
The Belgian Financial Service and Markets Authority has issued an official warning regarding OneCoin. The regulator clearly states the MLM company, nor its staff is officially recognized or authorized. It appears as if this movement is gaining a lot of traction in Belgium as of late, and the government wants to crack down on these potential scams sooner rather than later.
Conducting a Google search for OneCoin will yield some mixed results. Most people view this company as a multi-level marketing scam, and they are probably right. However, there are also a lot of people who claim they have gotten paid in the past. That is only to be expected, as long as new members continue to join the program.
Unfortunately, it is difficult for the FSMA to enforce any regulation against cryptocurrency in Belgium. All this “watchdog” can do is issue a public statement warning people about the dangers of OneCoin. This also means they cannot undertake legal action against the people actively promoting OneCoin.
It is interesting to note Laurent Louis mentioned on Facebook how the FSMA had “allegedly found nothing wrong with the OneCoin program.” He also mentioned how the MLM program “does not pose any problems, and is either illegal or a fraud.” Quite the misleading statements to say the last, and it triggered a prompt response from Belgian authorities.
The OneCoin scheme has been gaining a lot of traction around the world. Everyone wants to improve their financial situation, and the OneCoin marketing team makes it sound very easy to do so. However, they are not transparent about their business practices and have to show no evidence for any of their claims. Users who get paid only earn money because other people continue to join the network.
Some Reddit users claim the owners of OneCoin are converting the incoming funds to enrich their own assets. Buying properties in Sofia, for example, is one of their favorite tactics. Moreover, the team seems to find it difficult to answer questions regarding Bitcoin and blockchain, indicating they have very limited knowledge of these concepts.
Header image courtesy of FSMA