Following Germany’s Federal Financial Supervisory Authority’s (BaFin) recent move to freeze the bank accounts of IMS International Marketing Services GmbH, OneCoin payment processor, the regulator has now issued a cease-and-desist order to keep any activity related to OneCoin out of the country.
According to the official announcement:
“The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) issued cease and desist orders against Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize, holding the companies to dismantle their internet based “OneCoins” trading system and to end all sales promotion activities in Germany immediately.”
In addition, BaFin also issued a cease and desist order against One Network Services Ltd, Sofia/Bulgaria for its involvement in the unauthorized trading of OneCoin by Onecoin Ltd, Dubai, and OneLife Network Ltd, Belize.
The regulator said that this order is based on its finding that the way these companies have traded OneCoin as virtual currency in Germany fell under “Eigenhandel”, which as a financial service would have required prior authorization by BaFin. It explained that the companies:
“Onecoin Ltd, Dubai, OneLife Network Ltd, Belize and One Network Services Ltd, Sofia/Bulgaria, are part of a network of companies that market units of a virtual currency, which they declare to be a cryptocurrency, under the "OneCoin" brand using a multi-level marketing structure both in Germany and around the world.”
Besides BaFin, other financial watchdogs, including UK’s Financial Conduct Authority (FCA) and Belgium’s Financial Services and Markets Authority (FSMA), have issued warning again OneCoin in the recent past.
