OneCoin German Partner Banned in Germany - Really €29 MLN?


Is it true that OneCoin German Partner Banned in Germany? Is OneCoin reliable? Should you invest your money in OneCoin? Why did German BaFIN ban OneCoin partner? AtoZForex answers.

18 April, AtoZForex - This is not the first time that a regulator red flags OneCoin. In July 2016, Belgian regulator issued a warning against OneCoin. In September 2016 UK financial regulator FCA warned investors against using OneCoin services. Now according to the BaFIN announcement OneCoin German Partner IMS International Marketing Services GmbH has been Banned in Germany due not to having the necessary licensing.

BaFIN published a statement on the 10th of April about IMS. The German financial authority froze the bank accounts of IMS International Marketing Services GmbH, the OneCoin German operator partner: “effectively immediately as per the law.”

OneCoin German Partner Banned

The difference between OneCoin German Partner IMS being banned in Germany and the previous warnings from the UK and Belgium is that, there is a €1.5 mln fine possibility. Which is likely to be devastating for the International Marketing Services GmbH.

According to BaFIN update, International Marketing Services GmbH had engaged in money transfer operations on behalf of various OneCoin affiliated entities with the aim of gathering and forwarding investor funds. Although, such activity is not illegal in Germany, it requires a license by law.

According to the BaFIN International Marketing Services GmbH ban note, the IMS have been acting as an intermediary between clients and OneCoin. They would purchase OneCoins with Euro investments from investors in Germany. IMS then would be “forwarding it on to third parties, notably those outside Germany, on behalf of OneCoin,” BaFIN statement continues.

International Marketing Services GmbH facing €1.5 mln fine

Why was OneCoin German Partner Banned? There is nothing by law that International Marketing Services GmbH had done that would be illegal, except one point. Based on the German regulatory framework, services acting as money transfer “qualify as a money transfer business”. BaFIN note continues that “as a payment service falls under licensing requirements”. To sum it up, International Marketing Services GmbH did not posses any license authorization by the BaFIN.

“In total IMS International Marketing Services as a result of the arrangement with OneCoin collected around €360 million between December 2015 and December 2016.”

The German authorities have blocked bank accounts of the OneCoin German partner IMS. The blocked funds sum up in total over €29 mln. While there are so many warnings from various European countries, I wonder how "Strict German investors" trusted so much money to OneCoin? This is meanwhile the above water part of the iceberg. How many investors have lost with OneCoin?

What is OneCoin?

The OneCoin Ltd, Dubai, is a group of companies distributing virtual value units under the brand "OneCoin". Talking of OneCoin, not like BitCoin is not truly a cyrptocurrency. OneCoin is a multi-level marketing system operating via different affiliated entities globally. Meanwhile, IMS International Marketing Services was Onecoin affiliate within Germany.

Even the name said it, Marketing Services. MLM systems are all about marketing and the network. With that note, as long as the network is alive money will flow. However, once the network slows down, investors start panicking.

What do you think about OneCoin? Do you think OneCoin is reliable? Share your feedback with us.

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