German Regulators Order OneCoin to 'Dismantle Trading System'

Germany is stepping up its ongoing crackdown on OneCoin, a digital currency investment scheme widely believed to be fraudulent.

AccessTimeIconApr 28, 2017 at 2:15 p.m. UTC
Updated Sep 11, 2021 at 1:16 p.m. UTC

Germany is stepping up its ongoing crackdown on OneCoin, a digital currency investment scheme widely believed to be fraudulent.

The German Federal Financial Supervisory Authority (BaFin) has issued new cease-and-desist orders to two holding companies connected to OneCoin – Onecoin Ltd, Dubai and OneLife Network Ltd – ordering them to "dismantle their internet based 'OneCoins' trading system" and to "end all sales promotion activities" in Germany effective immediately.

OneCoin is an investment scheme centered around a purported digital currency, for which packages of "tokens" are sold that can later be exchanged. The operation has long been accused of operating a pyramid scheme, as participants are encouraged by advocates to find other buyers.

Notably, the regulator suggested that OneCoin promoters in Germany hadn't sought permission prior to conducting their activities, a determination that BaFin said spurred the latest cease-and-desist notices.

BaFin said it had issued a cease-and-desist notice to a third entity connected to OneCoin, One Network Services, for supporting the unauthorized sale of OneCoin in Germany.

The move indicates that Germany is accelerating its efforts to keep OneCoin out of the country. It comes just over a week after BaFin moved to halt the operations of a OneCoin-tied payment processor in Germany, freezing €29m in connected bank accounts.

But Germany isn’t the only country to crack down on OneCoin. Reports surfaced this week that authorities in India had arrested at least 18 individuals connected to the scheme.

A number of central banks have also issued warnings, including Thailand's, according to reports.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.