Kenyan authorities warn cryptocurrencies investors away from ICO

Christian MacLeod


A major financial markets regulator in Kenya has warned investors to avoid an initial coin offering currently taking place in the country.

The Capital Markets Authority (CMA) has said that the ICO being offered by Wiseman Talent Ventures, also known as Kenicoin, “have not yet been approved” by the body.

According to the Authority, members of the public are able to buy digital tokens from the firm which are currently being marketed at a price of 2,000 Kenyan shillings – which is equivalent to £15.40 British pounds or £19.66 US dollars.

It also alleges that Wiseman promises that investors will receive 10% returns on their investments each month.

In its statement warning members of the public away from the coin, the CMA also alluded to other potential red flags.

“Further, the Kenicoin value being marketed as exponentially rising since its initial offering poses substantive information asymmetry, liquidity and fraud risks”, it said.

“In a bid to protect investors, Capital Markets Authority (CMA) has cautioned the public against participating in any initial coin offering or trading in any coin exchange offered by Wiseman Talent Ventures.”

The Chief Executive of the CMA, Paul Muthaura, said that it was essential for the investing public to be aware that Wiseman Talent Ventures’ operations had not yet gone through the required channels.

“It is important for the general public to note that the nature and features of the Capital Raising and Coins Trading promoted by Wiseman Talent Ventures is taking the form of Regulated activities which have not yet been approved by the Authority”, Muthaura said.

He also said that the content posted on the Kenicoin website did not always match up with the information provided by Wiseman to the Authority – especially in the realm of finances.

“The Authority is currently investigating the operations of Wiseman Talent Ventures. We have noted discrepancies in the information provided on the firm’s website www.kenicoin.com and the information given to the Authority during interviews of Wiseman Talent Ventures leadership in relation to the total number of Kenicoin sold and the total funds raised”, Muthaura added.

In its statement, the CMA also outlined the state of the market for what it described as “unregulated digital currencies”, suggesting that it moves in cycles and that a “bust” was a risk.

“Global trends in unregulated digital currencies demonstrates that the cryptoasset market is uncertain and has experienced accelerated boom and bust cycles which may expose investors to substantial losses”, the statement read.

It also provided specific facts and figures. It pointed out that while by the end of 2017 Bitcoin’s price was US$19,783, it now stood at US$3,810.

The CMA is a long-established statutory agency in Kenya, which was setup in 1989.

Kenya has experienced problems of fraudulent and suspected crypto fraud before, however – meaning that the agency is kept busy.

At the end of 2017 during Bitcoin’s height, for example, police in the East African nation took three peer to peer Bitcoin brokers into custody after allegations that they used illegitimately derived money.


Christian MacLeod

Latest news

EUR/JPY nears 2020 highs – are the bulls ready to show?
Although it has shown itself to be a bit of a slow starter over the last few months, things appear to be beginning to heat up for the EUR/JPY. Read more
EUR/USD hits $1.18 following German sentiment survey
Despite seeing some positive gains on Monday following the posting of positive news regarding the details of a stimulus package and US labour market data, the USD has suffered a minor blow against the EUR as the economic situation stabilises in Europe. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#3 Plus500 Logo80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker
5
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
5
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
5

    Forex Fraud Certified Brokers

    skilling logo
    HYCM Logo
    IQ Option Logo
    Pepperstone
    ATFX Logo
    OctaFX Logo
    FXTM Logo
    LegacyFX Small Logo
    BlackBull Markets Small Logo
    XTB Logo
    Exness Small Logo
    Forex.com Logo
    Swissquote logo
    Plus500 Small Logo
    XM Logo
    iTrader Logo
    VantageFX Small Logo