Philip Chitalu, the CEO of the Zambian Security and Exchange Commission has warned the public against the promoted Onyxcoin cryptocurrency.
Mr. Philip Chitalu in his warning made known to the public that the creator of Onyxcoin, Kwakoo is not licensed to give investment advice or solicit funds from within or outside the country, thus dampening the promotion that the creator of Onyxcoin has been going about in the country.
Apparently, Kwakoo has been soliciting investments from the general public, gearing them towards investing in Onyxcoin.
Under the SEC’s security Act, No 41 of 2016, activities duchess as that of Kwakoo’s require proper licensing unless specifically exempted by law. In addition, the wild predictions that Onyxcoin promoters use to coax investors promising a 1000% increase by 2021 raises a red flag over the cryptocurrency.
Taking the opportunity, the CEO of the SEC made a comment about ICO’s, highlighting that such offerings weren’t standardized. He spoke about the risks that accompany ICO’s and that the legal and regulatory status of an ICO depends on its particular circumstance.
The tint of resentment against cryptocurrencies is clear on the Zambian SECs website where it emphasizes the following advice.
The Commission would also like to advise investors, both current and potential, to observe extreme caution when dealing with self-proclaimed cryptocurrency educators, trainers and advisors (whose numbers are rapidly increasing) as the credibility and accurateness of their teachings and advice are unverified.
Warnings From Regulators, A Growing Trend On The Continent
Recently, the Bank of Rwanda also issued a statement warning the general public about cryptocurrency scams such as Onyxcoin and many other Ponzi schemes that have made investors lose a lot of money, a couple including; Onyxcoin, Onecoin, 3 Friends system Group Ltd and Supermaketing Global Ltd.
The Bank of Rwanda cautioned investors to carefully vet projects before investing their money into them claiming that the Bank bears no responsibility and would not recompense scammed victims. This comes after a whopping 80% of ICO’s in 2018 were declared scams, with investors reeling in heavy loses.