New Zealand’s Regulator Warns Over Three Crypto Projects
The FMA calls out Bitcoin Revolution Ltd, OneLife Network and a related project OneCoin, as possible scams.
New Zealand’s Financial Markets Authority (FMA) has sounded the alarm over three cryptocurrencies projects, claiming that they bear characteristics of Ponzi schemes. Bitcoin Revolution Ltd, OneLife Network and a related project called OneCoin are working in violation of the country’s laws, the regulator said on Wednesday.
Bitcoin Revolution, which operates two virtual asset trading websites – bitcoinrevolutionapp.com, and pro-net-system.com – “could be involved in a scam,” according to the FMA. In previous months, the company posted promotional ads on social media, claiming that New Zealand’s Treasury as well as current and former prime ministers had been investing in Bitcoin (BTC). Those posts are “false,” the agency said.
Both Bitcoin Revolution websites are still accessible. Bitcoinrevolutionapp.com offers clients to “earn up to $1000 per hour or more, starting today.” The site has a lot of “testimonials” from alleged customer Facebook and Twitter accounts, but the social media logos do not redirect to the profiles of those people as in the normal practice of embedded posts.
The second and third firms in the alert are related to each other. OneLife presented as a marketing agency, based in Belize, is linked to Bulgaria’s famous scam OneCoin, according to the FMA. Both entities have organized various seminars and workshops in New Zealand to promote their products - cryptocurrency for OneCoin, and a virtual assets exchange for Xcoinx - despite working illegally as they do not possess the required permits.
“We recommend extreme caution before investing with OneLife or OneCoin as we are concerned they bear the characteristics of a scam, including withholding client funds and promising unrealistic returns.”
The websites of both projects are working normally as per a Cryptovest check on Wednesday.
“Unlike money issued by governments, there is a finite number of OneCoins, ensuring they cannot be affected by inflation and are impossible to counterfeit […] With its finite number of 120 billion coins, OneCoin is one of the biggest reserve currencies worldwide,” OneCoin explains on its website.
OneLife and OneCoin have been under the radar of more than ten financial regulators around the world, including Bulgarian Financial Supervision Commission, Belgian Financial Services and Market Authority, Croatian National Bank, and Bank of Portugal. In October, Thailand’s Securities and Exchange Commission (SEC) also sounded an alarm over both entities.