Latvia’s Financial and Capital Market Commission (FCMC) is
an autonomous public institution, which carries out the supervision of Latvian banks, credit unions, insurance companies and insurance brokerage companies, participants of financial instruments market, as well as private pension funds, payment institutions and electronic money institutions.
Part of the FCMC’s duties see them engage in consumer protection, with the regulator yesterday issuing a warning against OneCoin.
According to the FCMC, OneCoin is ‘
modeled on pyramid scheme principles
‘. The regulator goes on to warn that
unlicensed merchants and other similar organizations are not nationally monitored, and thus the interests of (Latvian) citizens are not protected.
OneCoin is of course not licensed to offer investments in Latvia. This in turn means that soliciting investment from Latvian nationals constitutes “unlicensed business activities”.
Unlicensed business activities, (such as) soliciting deposits or other repayable funds is a criminal offense.
Whether or not the FCMC will take further action against OneCoin and/or local promoters is unclear.
Earlier this week Norway’s Direct Selling Association also
labeled OneCoin a pyramid scheme
.
🤖 Quick Answer
What warning did Latvia's Financial and Capital Market Commission issue regarding OneCoin?The FCMC warned that OneCoin operates according to pyramid scheme principles and lacks national licensing. The regulator emphasized that unlicensed entities operating outside regulatory oversight fail to protect consumer interests, and stressed that OneCoin remains unauthorized to offer investment services to Latvian citizens.
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