The Zambian Securities and Exchanges Commission has warned the public against investing in Onycoin, a cryptocurrency developed by Kwakoo. The SEC’s CEO Phillip Chitalu informed the public that Kwakoo and its representatives aren’t licensed by the regulator to offer such services.
“Presentations which promote and solicit for funds to be invested in a financial product such as Onyxcoin qualify as investment advice in the context of the Securities Act’s definition of an investment adviser,” Chitalu said, as reported by local outlet Lusaka Times.
According to the country’s Securities Act, any person engaging in the provision of advice in investments must be licensed or otherwise properly exempted by the law, he said.
Onyxcoin promoters have told their investors that they predict the value of the crypto to increase by over 1,000% by June, 2021.
Chitalu also touched on ICOs, reminding the public to beware when investing. ICOs aren’t standardized by the Zambian laws, making it easy for investors to lose their money. “Their legal and regulatory status is likely to depend on the circumstances of the individual ICO,” he stated.
Onyxcoin hails itself as an innovative digital asset that intends on facilitating universal payments on its website. The token promises its users a safe and scalable payments platform across a broad spectrum of service and industry by converting into a stable digital fiat – OnyxCash.
Kwakoo Group recently launched OnyxPay, a decentralized exchange, in Kenya. Anthony Saint, the OnyxPay CEO stated at the time, “We have been working around the clock to make OnyxPay a great success. OnyPay is a decentralized payment platform with which we intend to integrate with all payment gateways across the globe to process payments in every arena of industry and service.”
According to a report by local crypto news outlet Bitcoin KE, Kwakoo Group also intends to invest in the Kwakoo Academy, an organization that seeks to educate users across Africa on blockchain technology and cryptocurrencies.
Onyxcoin has expanded its operations to other African countries including Rwanda, Uganda and Congo. However, recently, the Central Bank of Rwanda issued a warning against crypto scams operating in the country, one of which was Onyxcoin.
PUBLIC NOTICE: Warning against Pyramid Schemes, Network Marketing Programs and Scam Coins. #Rwanda #RwOT pic.twitter.com/Vv4Ad2hXwr
— CentralBankRw (@CentralBankRw) May 30, 2019
According to the regulator, the scams all promised their investors a get-rich-quick scheme, but required an initial investment from the interested investors. Once they received the money, they cut off ties with the investors.
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