Altcoin News

Industry Report: Authorities Warn Against OneCoin, Likely Scam

Nick Marinoff | Sep 30, 2016 | 11:43

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Dash partners with Coinfirm, the U.S. forms a caucus to create digital currency policies, and users are warned against OneCoin. Want to catch up on your latest digital currency and tech news? Read the stories below.

Also read: Industry Report: Yahoo Gets Hacked, 500 Million Accounts At Risk

DASH

Digital currency Dash is partnering with blockchain compliance platform Coinfirm. The company is set to provide Dash with an easy route into the “hearts” of businesses and corporations looking to allow digital currencies as potential methods of payments for the purchases of goods and services. The best news is that the partnership is not slated to interfere with Dash users’ present levels of privacy.

Dash’s director of finance Ryan Taylor explains:

“Coinfirm offers its customers truly world-class tools to meet regulatory requirements in an easy and effective manner. Dash benefits greatly from Coinfirm’s integration by accelerating the onboarding process for regulated businesses. By integrating Dash, Coinfirm also joins a growing list of businesses that recognize Dash’s up-and-coming status, and we’re excited about the opportunities this integration opens for our ecosystem and our users.”

U.S. CAUCUS

Congressmen Mick Mulvaney of South Carolina and Jared Polis of Colorado are creating the Congressional Blockchain Caucus, designed to teach both businesses and policy-makers alike about the benefits and technology behind bitcoin and digital currencies. The two legislators have teamed with the non-profit Coin Center in an attempt to persuade additional members of Congress to join them at the helm.

A longtime advocate of bitcoin, Polis said in a statement:

“The blockchain has boundless potential. From cryptocurrencies to supply chains to banking to property titling, blockchain-based solutions have the ability to decentralize cyber-security and revolutionize many industries.”

ONECOIN

London police are investigating a cryptocurrency called OneCoin, and the Financial Conduct Authority is warning against its usage. In the past, OneCoin has exhibited many of the classic qualities of a Ponzi scheme. The FCA’s warnings are now being reiterated by additional organizations in Europe, including the Swedish Bitcoin Foundation and the Belgian Financial Services and Market Authority.

An analysis behind multi-level marketing and OneCoin released a statement in September 2014 explaining:

“[OneCoin] is a simple recruitment-driven pyramid scheme, backed with a residual binary compensation structure. Masquerading as a cryptocurrency, OneCoin’s OneTokens are nothing more than Ponzi points. The more people join the OneCoin concept, the higher the popularity and value of the currency.”

Know of any stories that belong in our regular industry reports? Post your comments below!

Images courtesy of Bitcoinist, OneCoin.