Latvia’s Financial and Capital Market Commission (FCMC) issued a formal warning Tuesday against the cryptocurrency scheme OneCoin. The regulator declared that OneCoin operates on principles identical to those of a pyramid scheme.
The FCMC is Latvia's autonomous public institution tasked with supervising the nation's banks, credit unions, insurance companies, financial instrument market participants, pension funds, and electronic money institutions. A significant part of its mandate involves consumer protection.
According to the FCMC, unlicensed merchants and similar organizations lack national oversight. This deficiency leaves Latvian citizens’ financial interests unprotected. OneCoin, the regulator noted, holds no license to offer investments within Latvia.
Soliciting investments from Latvian nationals by an unlicensed entity like OneCoin constitutes unlicensed business activities. These activities, particularly accepting deposits or other repayable funds without proper authorization, are considered criminal offenses under Latvian law.
It remains unclear whether the FCMC will pursue further action against OneCoin or its local promoters. This development follows a similar declaration from Norway’s Direct Selling Association earlier this week, which also identified OneCoin as a pyramid scheme.