Samoa's central bank has warned residents about the risks of investing in the cryptocurrency after banning a company advertising it in the country.
CBS issued a directive to all financial institutions to ban all transactions in the currency OneCoin, which was heavily promoted last week.
CBS spokesman Siao Sioa said the company was blocked because the bank's investigations strongly confirmed it was operating as a pyramid scheme.
Sioa said promotions for the cryptocurrency were aggressively targeting Samoans, and many of them were investing in it. And while this investment could in theory be profitable, it is very risky.
“They used other Samoans who are abroad.. to promote and determine the advantage. “Invest 5,000 and you are guaranteed to get a return of 10,0000. If the average person heard this, what would stop them from trying to invest?”
The Samoan government is working on amending the wrestling laws with money laundering, which will define cryptocurrency companies as financial institutions.
Recall that at the beginning of the year Bulgarian police conducted raids in OneCoin offices, and in August 2017, the Italian Antimonopoly Committee and the Office of Consumer Protection called OneCoin a financial pyramid and fined them 2.5 million euros.
According to https://www.radionz.co.nz
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