1. How legitimate and compliant is OneCoin? Show Answer
Frank Ricketts, CEO at Sitetalk.com, on the Legitimacy
of OneCoin - 31 minute video
On September 17th, 2015 the U.S. Commodity Futures Trading Commission (CFTC), an independent agency of the US government created in 1974 that regulates futures and option markets, defined Bitcoin and all other legitimate cryptocurrencies as commodities, and put them all under the same regulations.
OneCoin examined these new developments with its legal team to determine if
and what licenses would be needed for the company to
operate and respect all rules and new regulations, and
register with the SEC.
Pending clarification of these matters, OneCoin temporarily
suspended new registrations from the US, and asked that
all US affiliates cease to market the concept during
events and through other media.
As a temporary workaround, from October 2015 through
January 2017, all new US registrations were made in
the US Virgin Islands. During this period, the OneCoin
legal team was working to reach an agreement with the
US authorities regarding the compensation plan of OneCoin
to no avail.
In June 2016, OneCoin announced an Initial Public Offering
(IPO) and Initial Coin Offering (ICO) scheduled for
second quarter 2018 in Hong Kong. Consequently, OneCoin
will be under extreme audits and regulatory scrutiny.
As such, no new registrations will be allowed in the
US until after the IPO and ICO are completed. In February
2017, OneCoin suspended all registrations from the US
including US territories such as the US Virgin Islands
and Puerto Rico.
Even though it would be good to include the US in the
long run, it would put the IPO approval at risk, and
the percentage of OneCoin members is so miniscule in
the US compared to the number of members globally, OneCoin
is minimizing risk to IPO approval by restricting US
US members who have OneCoin will be able to purchase
products and services on the merchant platform DealShaker.com,
purchase Options for Future Certificates (OFCs), and
current US members can still continue to register new
members outside the US and Canada.
David Brill, fintech lawyer and former counsel to bitcoin exchange Gemini, shares his outlook for bitcoin and blockchain businesses in the new political landscape. He points out the need to balance President Trump’s promise to cut back on regulation with his freeze on SEC and CFTC funding, and expects more institutional support for blockchain than for bitcoin.
OneCoin is the most fully compliant coin under the new EU regulations!
OneCoin has become the
largest member-based Digital Currency in the world. The
world is starting to pay attention now. Because of this
astonishing fact, compliance and regulation control are
of utmost importance!
OneCoin operates globally in accordance with the laws
of even the most strict countries in this context, including
China, among more than 195 countries in the world. In
order to prevent individuals from engaging in criminal
behavior, OneCoin has taken active steps in monitoring
the market and implementing rules aligned with the legal
development. For example, to prevent money laundering,
identity theft, financial fraud and terrorist financing,
OneCoin has implemented know-your-customer (KYC) rules
thus disrupting possible misconduct of its miners.
OneCoin is not an investment or "get rich scheme".
OneCoin is a global Digital Currency committed to servicing
the voids in our current global economy. Any affiliate,
no matter what country they're in, caught advertising
OneCoin or OneLife as an investment, or a get rich scheme,
will have their accounts frozen.
Per the conditions set forth in the updated rules and
regulations on the www.onelife.eu website, affiliates
must get approval on ANY and ALL advertising tools or
materials from the compliance department before they're
allowed to use them.
European Union Regulation regarding Digital Currencies
In July 2016 the European Commission (EC) presented
an “Action Plan for strengthening the fight against
terrorist financing” proposing a set of strict rules
on cryptocurrency regulation within an expanded framework
of EU’s anti-money laundering (AML) directive. These
proposals will impose tighter regulations on digital
currency platforms to prevent their use to fund terrorist
activities by tracing terrorists and preventing them
from moving funds and assets. The providers will be
obliged to monitor transactions and users the same way
banks do, including disrupting all sources of revenue
that might be used to finance terrorist organizations.
Plan for strengthening the fight against terrorist financing,
European Commission (EC), July 2016
Questions and Answers: Action Plan to strengthen
the fight against terrorist financing, European Commission
(EC), February 2016
The measure is also aimed at money laundering and tax
avoidance, bringing virtual currency exchanges under
the EU’s Anti-Money Laundering Directive. Another important
development is the introduction of a legal definition
of a cryptocurrency: “…a digital representation of value
that is neither issued by a central bank or a public
authority, nor necessarily attached to a fiat currency,
but is accepted by natural or legal persons as a means
of payment and can be transferred, stored or traded
electronically.” This definition will have to be integrated
into all EU member states’ anti-money laundering legislation
from January 1st, 2017 onwards.
EU member states will be required to provide a central
register of information of all bank and payment account
users for the authorities to have better access when
they are suspected of illegal activity. EU and the US
have been taking measures in that direction and as early
as April 2015 stated in the Communication from the Commission
to the European Parliament, the Council, the European
Economic and Social committee and the Committee of the
Regions that “The EU-US Terrorist Financing Tracking
Programme (TFTP) allows Member States to request a search
of financial data when there is reasonable suspicion
of terrorist activity. To date, TFTP has provided leads
relating to numerous terrorist suspects and their support
Communication from the Commission to the
European Parliament, the Council, the European Economic
and Social committee and the Committee of the Regions,
April 28th, 2015
These changes are addressed primarily at the open source
cryptocurrencies, which allow anonymous transactions.
Being a centralized reserve cryptocurrency, OneCoin
already complies with all the new regulations, preventing
individuals from engaging in criminal and unwanted behaviour.
OneCoin monitors its clients and implements rules aligned
with the legal development. For example, to prevent
money laundering, identity theft, financial fraud and
terrorist financing, OneCoin has implemented KYC (know-your-customer)
rules, thus disrupting any possible misconduct by its
The new action plan is the first coherent attempt of
the EU to regulate cryptocurrencies and the exchanges,
against the background of their increasing popularity.
Earlier this year the Japanese parliament passed legislation
regulating the cryptocurrency exchanges by requiring
them to register with the country’s financial watchdog
– the Financial Services Agency (FSA). The Russian government
went further, announcing plans to create state-controlled
national digital currency, that is rumored to combine
features from public and private blockchains.
Swedish Police Close OneCoin Investigation
16. March, 2017
The Swedish Gaming Authority has confirmed that an enquiry by the Swedish Police into the OneCoin cryptocurrency and its associated multi-level marketing business, OneLife, has now been closed. The Swedish Police issued an official decision on the case on February 6th 2017, stating that the preliminary investigation has been discontinued. The Police statement indicated that there was no basis upon which to continue the investigation as there was no reason to believe that an offense had been committed. The Police confirmed its decision to the Gaming Authority on March 1st 2017.
OneCoin stated: “We have been aware for some time of unfair competition practices
against OneCoin and OneLife, which have included serious
though demonstrably false allegations which have raised
understandable concerns. Where these have resulted in
formal enquiries or investigations, we have been happy
to cooperate fully with the authorities concerned, confident
in the knowledge that the facts would prevail. This
is the second such occurrence in which an investigation
by a regulatory authority has confirmed there to be
no findings of illegitimate dealings in our business,
and of course we welcome the prompt and professional
manner in which the Swedish Police have conducted their
2. Can OneCoin be regulated? Show Answer
We are open and honest in our dealings. OneCoin will set a new industry standard by being the first Digital Currency storing Know Your Customer (KYC) documents in its new blockchain. OneCoin wants to make Digital Currency transparent, and part of our financial culture and everyday life. By working proactively with governments and policymakers, OneCoin will help the industry achieve better regulation.
3. What about OneCoin and taxes? Show Answer
OneCoin is not a fiat currency with legal tender status in any jurisdiction, but often tax liability accrues regardless of the medium used. There is a wide variety of legislation in many different jurisdictions that could cause income, sales, payroll, capital gains, or some other form of tax liability to arise with OneCoin. It is your responsibility to be aware of and compliant with local, state and federal tax laws and regulations. It is advised that you seek counsel from your sponsor and tax authority.
4. What about OneCoin and consumer protection? Show Answer
The way OneCoin works allows both individuals and businesses to be protected against fraudulent chargebacks while giving the choice to the consumer to ask for more protection when they are not willing to trust a particular merchant.