SEC’s Alarm on OnyxCoin
In a firm statement, Philip Chitalu, CEO of the Zambian Securities and Exchange Commission (SEC), has placed a spotlight on the operations of OnyxCoin creator, Kwakoo. On August 2, reports emerged highlighting Chitalu’s warning that Kwakoo is not authorized to either offer investment advice or solicit funds from investors in Zambia—or beyond.
The Laws at Play
According to the Securities Act, No. 41 of 2016, certain financial activities, such as the ones undertaken by Kwakoo, must be conducted with the appropriate licenses unless a specific exemption applies. The SEC is taking these regulations seriously, and Chitalu’s comments emphasize the importance of adhering to the law to protect investors from dubious operations.
Promises of Unprecedented Returns
Chitalu expressed concern over the claims made by OnyxCoin promoters, notably a promise of returns exceeding 1,000% by June 2021. While dreams of striking it rich are certainly enticing, they often come with more risk than reward. The age-old saying goes, “If it sounds too good to be true, it probably is.”
Understanding ICO Risks
Diving into the world of initial coin offerings (ICOs), Chitalu offered a broader perspective. Not all ICOs are created equal—each one carries its own legal and regulatory implications based on individual circumstances. This means that potential investors should proceed with caution, as some of these offerings can be fraught with risk.
Heed the Warnings
On its official website, the Zambian SEC has echoed the cautionary notes regarding cryptocurrencies and ICOs overall. Chitalu advised, “Investors must be diligent when dealing with self-identified cryptocurrency experts, trainers, and consultants, as their advice may lack verification.” Sounds like these folks could use a few lessons from the “Trust But Verify” handbook!
OnyxCoin’s Ripple Effects in the Region
If you think Zambia is the only country raising red flags about OnyxCoin, think again. Our neighbors in Rwanda have also dealt with the fallout from this cryptocurrency. The National Bank of Rwanda has warned citizens about potential scams related to Onyxcoin among others, highlighting a regional pattern of questionable crypto schemes that resemble classic Ponzi setups.
As a savvy investor, it pays to stay informed. Always verify credentials and conduct thorough research before dipping your toes into the crypto waters. The world of digital currency is booming, but with great potential comes an equally great responsibility to be cautious.
