Norway's Financial Supervision Authority, Finanstilsynet, issued an investment fraud warning against Better Experience (BE) on March 23rd. The regulator stated that Better Experience lacks the necessary approval to operate investment services within Norway, making its operations illegal under Norwegian law.
Finanstilsynet further noted that Better Experience is not registered with the authority as a provider of exchange or storage services for virtual currency. This absence of registration means Finanstilsynet has no supervisory control over the company or the services it offers to the public. Norwegian regulations specifically prohibit offering binary options to non-professional investors, a restriction Better Experience appears to disregard.
The Norwegian Financial Supervisory Authority has observed private individuals in Norway who joined Better Experience actively recruiting new customers. These recruiters promise high profits to potential participants. Finanstilsynet reminds the public that providing investment services without the required license, as well as complicity in such activities, is illegal. The authority can impose fines or report offenders to the police.
Better Experience, also known as Be, is identified as a pyramid scheme run by Monir, Moyn, and Ehsaan Islam. Brothers Monir and Moyn Islam, originally from the UK, were previously involved in promoting OneCoin, a notorious cryptocurrency Ponzi scheme. They reportedly moved to Dubai after OneCoin's collapse in 2017.
The company shifted its focus to Norway after recruitment efforts faltered in other markets, including Colombia, Guatemala, Italy, and Portugal. Slovakia, India, and Germany are also among the countries Be now targets for new customers. The recruitment strategy in Norway heavily relies on social media platforms like TikTok and Instagram.
E24 reports that Be and its members promote the scheme by showcasing exotic trips, hosting events with an upbeat atmosphere, and promising the chance to earn millions of kroner. One promotional video claims that affiliates can earn approximately half a million kroner per month in bonuses by recruiting enough customers who then recruit others.
Finanstilsynet's warning follows an earlier declaration from Norway's Gambling Authority, which also expressed suspicion that Be operates as a pyramid scheme. Despite these regulatory concerns, Be maintains it is not a pyramid scheme. However, when E24 pressed the company for specific figures on its ratio of recruited affiliates to retail customers, Be declined to provide the data.
Beyond Norway, Better Experience has drawn scrutiny from regulators in Canada and Colombia. Finanstilsynet advises investors against entering into agreements or using Better Experience's services. Individuals who choose to participate should be prepared to lose all the money invested into the system.