Нэмэгдсэн: 2017-11-01 12:52:00

    Unofficial translation

 

The Financial Regulatory Commission (FRC), within its statutory power, is mandated to supervise and regulate the non-bank sector including insurance and securities markets, and the microfinance sector—and is responsible for ensuring stable and sound financial markets.

 

The emerging cryptocurrencies, such as Bitcoin and Ethereum, have become a ubiquitous medium of exchange in the global financial markets and are legally acceptable in several countries despite its controversy. In Mongolia, however, the use of such cryptocurrencies is prohibited by law. Since its conception as a digital currency, Bitcoin has led to the creation of hundreds of other cryptocurrencies though countries have not reached a consensus regarding its policy and regulatory framework. The Financial Regulatory Commission is exploring the legal framework for cryptocurrencies and is carefully observing the global trend in order to assess whether its adoption is viable in Mongolia.

 

The use of pyramid schemes characterized as multi-level marketing, and other fraudulent activities marketed as cryptocurrency are equally rising against which the FRC urges the general public to be vigilant. Unlike Bitcoin, OneCoin is an example of a fraudulent currency based on the Ponzi scheme. Thailand, Germany, Hungary, Malta, China, Belgium, and India have confirmed to issue warning on OneCoin and, prohibit and suspend activities and services related OneCoin.

 

Over the past months, increasing cases of unauthorized activities being marketed through the internet and social media that otherwise require the FRC’s authorization and license have been reported. The FRC is hereby issuing a warning against investing in unregistered financial products and services such as unregistered bonds, insured bonds, shares, public loans, current assets, and other unauthorized instruments offered by unsupervised entities in order to avoid being a fraud victim.

 

If you invest in unauthorized financial products and services based on your own judgment, you shall be accountable for the consequences that may arise due to risks associated, and any disputes in respect thereof shall be considered as a civil matter and governed by the Civil Law of Mongolia.

 

 

Financial Regulatory Commission