The Zambian Securities and Exchange Commission’s (SEC) CEO, Philip Chitalu, has warned the public that cryptocurrency OnyxCoin creator Kwakoo is not licensed to give investment advice or solicit funds, from within and outside the country alike.

The Lusaka Times relayed the Zambian SEC head’s warnings in a report on Aug. 2. According to the report, Kwakoo has been promoting Onyxcoin and soliciting investments from the Zambian public.

Relatedly, CEO Chitalu notes that Securities Act, No. 41 of 2016 dictates that certain activities — such as Kwakoo’s — require proper licensure in Zambia, unless specifically exempted by law. Moreover, Chitalu noted that the SEC is under the impression that Onyxcoin promoters are claiming that the cryptocurrency will increase by over 1,000% by June 2021.

Chitalu also commented on initial coin offerings (ICOs) more generally, saying that such offerings are not standardized. According to Chitalu, the legal and regulatory status of a given ICO depends on its particular circumstances, and that they also carry clear risks.

As per its website, the Chitalu and the Zambia SEC also provide a warning on cryptocurrencies and ICOs generally. The commission's statement emphasizes the following advice:

“The Commission would also like to advise investors, both current and potential, to observe extreme caution when dealing with self-proclaimed cryptocurrency educators, trainers and advisors (whose numbers are rapidly increasing) as the credibility and accurateness of their teachings and advice are unverified.”

Onyxcoin in Rwanda

As previously reported by Cointelegraph, the National Bank of Rwanda issued a warning to the public about alleged crypto scams, including Onyxcoin. As per the announcement, at least four types of crypto Ponzi schemes or the like have been active in Rwanda, including Kwakoo’s Onyxcoin, Supermarketings Global Ltd, 3 Friends System Group Ltd and OneCoin.