Through resolutions dated December 2016 and August 2017238, the Italian Antitrust Authority (Autorità Garante della Concorrenza e del Mercato)---empowered by the Italian Consumer Protection Code---suspended activities, and subsequently fined companies carrying out activities aimed at promoting the Onecoin cryptocurrency. These companies---One Life Network Ltd and One Network Services Ltd---were promoting, mainly via web, tokens to be converted into cryptocurrencies, with consequential expectation of profits for investors. The Authority ascertained that such activities constituted, inter alia, a pyramid promotional scheme or a Ponzi scheme (i.e., where a consumer gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products), which is forbidden under the Italian Consumer Protection Code. On August 17, 2017, the Italian Antitrust Authority fined the two companies for a total of €2,595,000 for violation of consumer protection rules due to their engagement in Ponzi scheme and misleading promotional methods.
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