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  • 1. How legitimate and compliant is OneCoin?
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    Frank Ricketts, CEO at Sitetalk.com, on the Legitimacy of OneCoin - 31 minute video


    USA

    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 registrations.

    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.


    European Union

    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
    Date: 07/13/2016

    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.

      Action 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 networks.”

      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 users.

    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.


    Sweden

    Swedish Police Close OneCoin Investigation
    SOFIA, Bulgaria
    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 enquiry”.



  • 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.


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