The Italian Consumer Center for South Tyrol (VzS) confirms OneCoin remains banned from operating in Italy, despite the company's recent claims. This clarification follows OneCoin's announcement last month that Italian courts had lifted restrictions on the cryptocurrency scheme, asserting the "Italian market is open again." A closer examination of the actual court decision, however, reveals a different situation.
OneCoin conflated the suspension of a financial penalty with the lifting of an operating ban. The VzS states that only the requirement to pay a substantial fine was suspended, not the fundamental prohibition against OneCoin conducting business in the country. This distinction creates a false impression that the company can resume operations.
In 2016, Italian authorities formally declared OneCoin an illegal pyramid scheme. The Autorità Garante della Concorrenza e del Mercato (AGCM), Italy's competition and market authority, imposed a 2.5 million euro fine on the company and issued a definitive ban on its activities within Italy. This action fell under Italian consumer protection laws, specifically targeting deceptive commercial practices and multi-level marketing schemes deemed illegal.
OneCoin challenged the AGCM's ruling. The company first appealed to the Lazio Administrative Court, also requesting an emergency suspension of the fine while its case proceeded. That initial appeal was unsuccessful.
The company then escalated its challenge to the Council of State, Italy's highest administrative court. The Council of State determined that delaying the fine's payment would not immediately harm the state budget. Consequently, it suspended the requirement for OneCoin to pay the 2.5 million euros until lower courts completed their review of the case's merits. The Council of State also instructed the Lazio court to expedite its review process.
OneCoin quickly seized upon this decision. The company interpreted the Council of State's ruling as a complete lifting of the operating ban. The language in the court's order contributed to this misreading; it specifically addressed the fine's payment but did not explicitly reference the operating ban's status.
But the AGCM maintains that its original operating ban remains fully in effect. The competition authority's decision that OneCoin cannot legally operate in Italy stands. Only the immediate payment obligation for the 2.5 million euro penalty has been put on hold, pending the final outcome of OneCoin's comprehensive appeal.
The discrepancy raises questions about OneCoin's legal representation. Italian lawyers should understand the clear distinction between a suspended financial penalty and a lifted operational prohibition. This suggests either a misinterpretation of a complex court order or a deliberate spin of the decision to benefit OneCoin's public image and potential recruitment efforts. Both scenarios carry significant risks for investors who might have believed the company's announcements.
The VzS, which initially filed a complaint against OneCoin alongside the European Consumer Center, clearly states the market in Italy is not open again for OneCoin. The ban remains. Only the payment clock for the fine has stopped.
The AGCM continues to investigate the matter and may publish further clarification soon. However, since the ban took hold years ago, OneCoin's recruitment activities in Italy have largely collapsed. The damage is already done, affecting both the company's operational prospects and the credibility of any entity repeating its claims of being cleared to operate in Italy.