Bafin Issues Cease and Desist Orders to Ban Onecoin Activities in Germany

Germany’s Federal Financial Supervisory Authority (Bafin) has issued cease and desist orders against three Onecoin-related companies to keep Onecoin activities out of the country, effective immediately.

Also read: German Regulator Seizes Funds From a Onecoin Associated Company

Bafin’s Cease and Desist Orders

On Saturday, Bafin issued cease and desist orders against Onecoin Ltd, Dubai; Onelife Network Ltd, Belize; and One Network Services Ltd, Sofia/Bulgaria. These three companies are part of the Onecoin network of companies “using a multi-level marketing structure both in Germany and around the world,” Bafin states. According to its official announcement:

[Bafin] issued cease and desist orders against Onecoin Ltd, Dubai, and Onelife Network Ltd, Belize, holding the companies to dismantle their internet based “Onecoins” trading system and to end all sales promotion activities in Germany immediately.

Bafin explains that this decision was based on the conclusion that the way these entities trade Onecoin as “virtual currency” in Germany falls under “Eigenhandel (own funds trading) of financial instruments” as outlined in the German Federal Banking Act (KWG). “Eigenhandel as a financial service would have required prior authorization by Bafin,” the regulator further describes.

In addition, Bafin has also issued a cease and desist order against One Network Services Ltd for its “involvement in the unauthorized trading of ‘Onecoins’.”

Bafin’s Previous Onecoin-Related Orders

Saturday’s actions follow the regulator’s orders against a Onecoin payment processor, IMS International Marketing Service Gmbh.

In February, Bafin froze the company’s bank accounts. Then on April 5, the regulator ordered the company to “immediately cease and wind down its unauthorized money remittance business with investors in ‘Onecoin’ for Onecoin Ltd, Dubai,” according to Bafin’s announcement at the time.

On April 18, Bafin issued a direct order to Onecoin Ltd, Dubai, ordering the company “to immediately cease its business activities in Germany insofar as it is involved in the initiation, conclusion and settlement of the unauthorized money remittance business conducted by IMS through the execution of payments to IMS’ accounts and the issuing of payment instructions to IMS.”

With Saturday’s cease and desist orders, Bafin aims to keep Onecoin-related activities out of Germany. While these orders are enforceable immediately by law, “they may still be subject to judicial review,” Bafin wrote.

Do you think other countries will follow Germany’s example? Let us know in the comments section below.

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Images courtesy of Shutterstock, Bafin, IMS International Marketing Service, and Onecoin

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via Kevin Helms