Zambia SEC warns against investing in Promoted Onyxcoin cryptocurrency

This is certainly not the first nor the last time we get a Zambian official institution warning against the use of digital currencies. We recently learnt that the Zambian Securities and Exchange Commission’s (SEC) CEO, Philip Chitalu, has issued severe warnings to the public against the use of Onyxcoin. He supports his point of view by saying that cryptocurrency Onyxcoin creator, Kwakoo, is not licensed to solicit funds or give investment advice, from within and outside Zambia.

On August 2, 2019, the Lusaka Times relayed the Zambian SEC head’s severe warning in a report which made the talk of time. According to the report, Kwakoo has been actively promoting Onyxcoin and soliciting investments from the Zambian inhabitants.

In accordance to the country’s legislation, CEO Chitalu in his security duty pointed out to Securities Act, No. 41 of 2016 which dictates that certain activities such as those run by Kwakoo require proper licensure from the Zambian government unless specifically excepted by the law in power. In addition to this, CEO Chitalu further noted that the SEC is under the virtual impression that Onyxcoin promotes are persistent in claiming that the digital currency will increase by over 1,000% by June 2021.

Without hesitation, Chitalu went forth to commenting in a general way on initial coin offerings (ICOs). He said that such offerings are not standardized. As for Chitalu, the regulatory and legal status of a given ICO depends fully on its particular circumstances. He added that such carry a high risk which can’t be neglected.

Chitalu and the Zambian SEC in whole are seriously warning against the use of Cryptocurrencies and ICOs from a general point of view. The commissioner’s statement unfolds as such “The Commission would also like to advise investors, both current and potential, to observe extreme caution when dealing with self-proclaimed cryptocurrency educators, trainers and advisors (whose numbers are rapidly increasing) as the credibility and accurateness of their teachings and advice are unverified.”

Remember that the Cointelegraph previously reported that the National Bank of Rwanda issued a warning to the public against alleged crypto scams among which was Onyxcoin.

Leave a Reply

Your email address will not be published. Required fields are marked *