OneCoin Claims It’s Unaware London Police Investigation – The Basics about Cryptocurrency

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Following the recent statement issued by the UK Financial Conduct Authority that warned users against trading or engaging in the alleged cryptocurrency scheme OneCoin, the company has said it is “disappointed” with the regulator’s statement.

As the UK’s primary financial regulator, the Financial Conduct Authority (FCA) has previously granted licenses to the likes of bitcoin exchange and services Circle. Earlier this week, the regulator and authority issued a public statement, warning consumers against engaging or trading in OneCoin, an altcoin that has garnered controversy in the past.

OneCoin is widely seen as a fraudulent cryptocurrency scheme that purports itself to be a digital currency similar to bitcoin. In its warning, the FCA revealed the City of London Police were currently investigating the alleged scheme, advising consumers who believe they have been swindled to reach out to the National Fraud Centre.

With a release [PDF] today from its EU-based web portal, the company said it was “disappointed” with FCA’s statement, noting that the FCA had done so without contacting the company. Furthermore, OneCoin says that it hasn’t been contacted by the City of London Police. While the law enforcement agency carries out its investigation, the company also adds that it is unaware of the investigation, nor has it received any allegations of wrongdoing.

An excerpt from the statement read:

OneCoin is disappointed that the FCA has issued a statement without having first contacted the company. OneCoin has not been contacted by the City of London Police. No allegations of any wrongdoing have been put to OneCoin and the basis for and scope of any investigation has not been explained.

Claiming to be a “global software and technology company” that developed a cryptocurrency, the company said it has an official presence with offices in Bulgaria, Hong Kong and the United Arab Emirates.

Since its ‘token currency’ isn’t traded in the open market, skeptics have questioned the cryptocurrency’s very existence. Meanwhile, the company says that it operates in a “unique centralized model” that includes a record of all transactions on a ledger and implementing Know-Your-Customer (KYC) rules as measures to safeguard its clients.

The statement further added:

 OneCoin is committed to following good business practices and the relevant rules and regulations in the countries in which it operates. It will co-operate fully with the authorities in pursuit of this objective.

The FCA’s warning follows that of its Belgian counterpart which warned users against using OneCoin earlier in June. The same month also saw two OneCoin investors and promoters arrested in Bangladesh where investigators have determined it to be a Ponzi scheme.

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