CMA Warns Kenyans Against Buying Cryptocurrency from a Kenyan Firm

Written by on January 3, 2019

Bitcoin was a buzzword especially in 2016 – 2018, we saw stories of various individuals who have earned millions of money from buying and selling the currency. This included a school dropout who only invested $12 and became a millionaire and 50 cent who invested in bitcoins and forgot about it. We even did a feature talking to a bitcoin investor to get a better understanding of cryptocurrency.

Now, the Capital Markets Authority (CMA) has warned Kenyans on the high risks associated with an initial coin offering (ICO) offered by Kenyan firm Wiseman Talent Ventures.

CMA chief executive Paul Muthaura, said investors risked losing their investments as the firm is unregulated by CMA.

“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,” Mr Muthaura said in a statement.

“The Kencoin value being marketed as exponentially rising since its initial offering poses substantive information asymmetry, liquidity and fraud risks.”

The firm has been raising money from the public through issuance of digital tokens in the form of coins.

It has provided a platform for the trading of the said coins on its coin exchange styled as www.kenicoinexchange.com.

“The firm promised guaranteed returns of 10 per cent monthly on the initial investment in coins which were issued at Sh100 at the Initial Coin Offering (ICO) and are now purportedly being marketed as trading at Sh2,000 at its coin exchange,” noted CMA

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