Another day, another European regulator warns about OneCoin without actually doing anything about it.

The latest regulatory warning against OneCoin is another from the Central Bank of Hungary.

An advisory on the risk of cryptocurrencies dated December 20th singles out OneCoin as a pyramid scheme.

Among other things, the Central Bank of Hungary is charged with promoting the stability of Hungary’s financial system. The bank operates separate to the Hungarian government and is answerable only to the European Central Bank.

In A press-release titled “Increased risk accessing virtual currencies over the web”, the Central Bank 
warns
cryptocurrencies are not regulated or monitored by Hungarian authorities.

The Central Bank differentiates between legitimate cryptocurrencies and OneCoin, which is singled out as a pyramid scheme.

There are some (that operate) like pyramids schemes (eg. OneCoin), which seem to permit investment in assets, which can only be traded via the issuer (of the coin) via a closed “stock market”.

The system is promoted over the internet and promises high yields to new recruits in such a way that payments by new participants are used to pay a commission to the person who recruited them.

The Central Bank claim they are “continuously monitoring” cryptocurrencies in Hungary, however all they can offer the general public is a warning.

Back in March the Central Bank warned OneCoin
did not have regulatory permission
to operate in Hungary.

On paper, OneCoin is primarily operated out of Bulgaria. From what little we’ve observed of OneCoin’s inner workings however, funds are laundered via a global network of shell companies.

Despite regulatory warnings from almost a dozen countries, Bulgarian authorities have yet to take any action against the scheme.

🤖 Quick Answer

What did the Central Bank of Hungary warn about concerning OneCoin?
The Central Bank of Hungary issued an advisory on December 20th identifying OneCoin as a pyramid scheme. The warning, titled "Increased risk accessing virtual currencies over the web," emphasized that cryptocurrencies lack regulation and monitoring by Hungarian authorities, differentiating between legitimate cryptocurrencies and OneCoin's fraudulent operations.

What is the role of Hungary's Central Bank?
The Central Bank of Hungary is responsible for promoting the stability of Hungary's financial system. Operating independently from the Hungarian government, it answers exclusively to the European Central Bank, ensuring oversight of the nation's monetary and financial policies.

Why did Hungarian regulators single out OneCoin?
OneCoin was singled out due to its pyramid scheme structure and unregulated status. Unlike legitimate cryptocurrencies, OneCoin lacked proper authorization and monitoring by Hungarian authorities, posing significant financial risks

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