The UK Financial Conduct Authority (FCA) believes that consumers should be wary of dealing with OneCoin, which claims to offer the chance to make money through the trading and ‘mining’ of virtual currencies.
OneCoin markets itself as ‘a digital currency, based on cryptography’. It claims to have a finite amount of currency units which means it is unaffected by factors such as inflation, and that it is not bound by a central bank.
The City of London Police are currently investigating OneCoin. The company is not authorized by the FCA and the authority does not believe it is undertaking any activities that require our authorisation. However, FCA are concerned about the potential risks this firm poses to UK consumers.
As OneCoin is not authorised, consumers who deal with it will have no protection from the Financial Ombudsman Service or the Financial Services Compensation Scheme.
To see the full FCA warning, click here.