Samoan Central Bank: “No Guarantee Cryptocurrencies Will Hold Their Value,” Dealers Will Be Treated as Financial Instittutions

The Central Bank of Samoa (CBS) has issued a press release warning the public that cryptocurrencies like Bitcoin have no legal status as currencies in that country and should be considered, “very risky and speculative in nature.”

According to the CBS:

“People who invest in any of the cryptocurrencies do so at their own risk…There is no guarantee that cryptocurrencies will be accepted as a medium of exchange, or will hold their value…Therefore, the Central bank does not encourage anyone to invest in any of them.”

Meanwhile, the bank has also stated that crypto dealers will be held to the same standards as dealers of other financial instruments and currencies in Samoa:

“…any person who wishes to promote Cryptocurrency or Digital currency is considered under the Money Laundering prevention Amendment Act 2018 as a Financial Institution. This means it must have a valid business licence issued in Samoa and is required to follow the Central Bank’s reporting requirements for Financial Institutions.”

Earlier this year, the CBS came out strongly against purveyors of an ICO called Onecoin when it unequivocally characterized the project as, “a pyramid scheme,” and ordered Samoan financial institutions, “to block all foreign exchange transactions related to Onecoin/ Onelife cryptocurrency promotion.”

According to the CBS, the move was designed to not only protect Samoan investors but to preserve the country’s foreign currency reserves, “which (were) at risk due to the high number of people wanting to remit money overseas for this get rich quick scheme.”

In May, authorities in China moved to prosecute 98 people implicated in the $2.3 billion dollar alleged Onecoin cryptocurrency fraud.

 


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