Zambia SEC warns against investing in ONYXCOIN Cryptocurrency

Philip Chitalu, the CEO of Zambia SEC has warned the public that Kwakoo, the founder of Onyxcoin is not licensed to give investment advice from within and outside the country as reported by The Lusaka Times. Mr Chitalu said KWAKOO is promoting and advising individuals to invest their money in Onyxcoin packages.

SEC said that the promoters are predicting that the value of Onyxcoin to increase by 100 times or 1,000 percent by June 2021.

Mr. Chitalu clarified that “it is a requirement of the Securities Act, No. 41 of 2016 (“the Securities Act”) that any person engaging or holding out as engaging in the provisions of advice on investments in securities, including advice on subscribing for, Of purchasing, selling, exchanging or holding of, securities to any person in Zambia must be licensed, unless otherwise properly exempted by Law”.

The SEC’s statement emphasizes the following advice: “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.”

Previously the National Bank of Rwanda also issued a warning to the public against the alleged crypto scams including Onyxcoin. As per the announcement, there are four crypto Ponzi schemes that have been active in Rwanda are Kwakoo’s Onyxcoin, Supermarketings Global Ltd, 3 Friends System Group Ltd, and OneCoin.