Share this article
German Finance Watchdog Shutters OneCoin Payment Processor
Germany’s top finance regulator has moved to shut down a payment processor tied to the OneCoin cryptocurrency scheme.
By Stan Higgins
Updated Sep 11, 2021, 1:14 p.m. Published Apr 18, 2017, 1:00 p.m.
Make us preferred on Google
Germany's top finance regulator has moved to shut down a payment processor tied to to the OneCoin cryptocurrency scheme, a digital currency service that has faced widespread allegations of fraud.
The Federal Financial Supervisory Authority (BaFin) said on 10th April that it was freezing the accounts of IMS International Marketing Services GmbH, which is registered in Germany.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
According to BaFin, the firm accepted €360m on behalf of OneCoin between December 2015 and December 2016. Of that amount, €29m is being held in the accounts frozen by the regulator.
The agency went on to threaten financial penalties in excess of €1m, going on to say:
"In case IMS should not abide by the order to cease business, BaFin threatened to impose a coercive fine of €1.5m; for non-compliance with the winding-down order, it would impose a coercive fine of €150,000. By law, the administrative acts, including the threats of coercive fines, are immediately enforceable."
With the move, BaFin becomes the latest regulator in Europe to take action against elements of the OneCoin scheme.
OneCoin is a multi-level marketing scheme that pitches an eponymous digital currency as an investment opportunity. Prospective buyers purchase batches of tokens which can then be redeemed online, though those involved are strongly encouraged to find buyers of their own – a characteristic that lends itself to accusations that OneCoin is a pyramid scheme.
In the past year, regulators in several African countries have warned consumers about local efforts by OneCoin to solicit investors. In the UK, London police have been investigating OneCoin since as early as September, while in Italy, regulators moved last month to prohibit promotional efforts for OneCoin by local proponents.
Notably, BaFin made it clear in a statement that it was moving against the firm due to unlicensed money activities rather than the legality of sales of OneCoin tokens.
"BaFin does not have the right to decide as to the validity under civil law of the 'OneCoins' sales contracts. It may therefore not answer questions of this nature," the agency said.
Closed sign image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
