The CEO of Zambia Securities and Exchange Commission 'SEC', Philip Chitalu, has issued a warning to the public investing on OnyxCoin whose creator Kwakoo is not licensed to give investment advice or solicit funds, from within and outside the country.
According to a local news outlet, Lusaka Times relayed the SEC head’s warnings in a report on Aug. 2. Which Kwakoo has been promoting Onyxcoin and seeking investments from the Zambian public, predicting un-usual posibility increase of about 1,000 percent of OnyxCoin by June 2021.
The SEC CEO noted that Securities Act, No. 41 of 2016 dictates that certain activities — such as Kwakoo’s — requires proper license in Zambia, unless specifically exempted by law. Moreover "presentations which promote and solicit for funds to be invested in a financial product such as Onyxcoin qualify as investrnent advice in the context of the Securities Act’s definition of an investment adviser."
He added that the role of SEC is to protect investors by supervising the market and their dealings.
Commenting on initial coin offerings (ICOs), Chitalu said that such offerings are not standardized. The legal and regulatory status of a given ICO depends on its particular circumstances, and that they also carry clear risks.
Previousely in May, National Bank Rwanda has issued a warning against OnyxCoin in a post on twitter, with screen-shot of attached document. The document recognizes OnyxCoin among others as ponzi scheme and scam, requesting the public to stay away from it.
Part of the tweet reads:
"PUBLIC NOTICE: Warning against Pyramid Schemes, Network Marketing Programs and Scam Coins."