Croatian National Bank Issues Warning about OneCoin

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OneCoin is a so-called cryptocurrency.

The Croatian National Bank (HNB) issued a warning to the public about cryptocurrency OneCoin which may bring dangers to citizens and advised them to be very careful when deciding whether to use it or not, reports Jutarnji List on March 8, 2017.

“Given the fact that we have observed on the Croatian territory activities of advertising and sales of OneCoin, which is a virtual currency or a cryptocurrency, the Croatian National Bank considers it necessary to alert the public to some of the facts and possible risks arising from this product”, said the HNB in a statement published on its website.

The Bank explained that OneCoin is not electronic money as defined by the Law on Electronic Money, nor is it a payment service according to the Law on Payment System. Companies which issue this type of product and trade with it have not been licenced as such by the Croatian National Bank, nor are their business operations under the supervision of the HNB.

“The funds invested in the product are not protected by the system of deposit insurance, and people who choose this form of investment bear the risk of loss of investment in its entirety”, warned the central bank.

It also reported that several European Union bodies have warned about the dangers which may arise from using OneCoin. For example, the competent authority of the United Kingdom (The Financial Conduct Authority, FCA) warned that OneCoin was under police investigation; competent authority of Belgium (The Financial Services and Markets Authority, FSMA) noted that it had not licensed persons and institutions associated with the issuance and advertising of OneCoin; the Hungarian central bank (Magyar Nemzeti Bank, MNB) pointed out that it was possible that it was a case of the so-called Ponzi scheme and warned of the dangers which may arise from that.

“Citizens are therefore advised to take such information into account when deciding on the OneCoin product and to act very carefully”, concluded the Croatian National Bank.


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