The public was warned about potential risks when investing in a new crypto coin called ONYXCOIN by the Securities and Exchange Commission (SEC). According to the CEO of SEC, Philip Chitalu, they obtained information about KWAKOO, an African company, that was persuading the public to invest in that coin.
The company is encouraging people to purchase ONYXCOIN packages. The Security and Exchange Commission believes that KWAKOO assured that the coin would grow in price from 100 to 1,000 percent in the next two years.
Philip Chitalu also added that in Zambia in order to be qualified to provide advice on security investing, particularly with regard to advice on buying, selling or holding the security, one has to have special licenses.
The promotion of investing in this new crypto coin by KWAKOO is considered as investment advice under the law’s definition. The CEO of SEC cautioned that the company does not have the needed licenses given by the SEC to offer investment advice in Zambia.
Philip Chitalu also emphasized the Securities and Exchanges Commission’s role in licensing dealers as well as investment advisers. The SEC guarantees the security of investors with their strict supervision of the market.
In addition, the director of the SEC mentioned that the legality of ICOs was questionable and was considered on an individual basis.