KWAKOO, a multi-faceted e-commerce platform for Africa and other global markets, is requesting Zambian public to invest in the Onyxcoin, a digital currency. The SEC (Securities and Exchange Commission) warned the people and proclaimed that the company is not authorized to carry forward such an act.
Chief Executive Officer of the SEC, Philip Chitalu, clarified the requirement of Securities Act, No. 41 of 2016 “that any person or firm engaging in advising on investments in securities, including advice on subscribing for, of purchasing, selling, exchanging or holding of, securities to any person in Zambia must be licensed, unless otherwise exempted adequately by Law.”
He further added, “presentations which promote and solicit for funds to be invested in a financial product such as Onyxcoin qualify as investment advice in the context of the Securities Act’s definition of an investment adviser.”
The officer informed people about taking severe caution before investing in Onyxcoin as KWAKOO is NOT licensed to solicit funds from the Zambian investing public for investment in any financial product in Zambia or elsewhere.
The commission’s role of issuing licenses makes the protection of investors as their first move. Further, the initial coin offerings involve the formation of digital tokens through distributed ledger technology and are traded to investors in return of a cryptocurrency like Bitcoin. Philip notified about the transparent risks accompanying the promoted investments and forewarned the citizens.