CMA warns public against trading in digital coins

Capital Markets Authority boss Paul Muthaura
NAIROBI, KENYA: The 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.

CMA noted that Wiseman Talent Ventures is raising money from the public through issuance of digital tokens in the form of coins through a platform for the trading on its coin exchange styled as www.kenicoinexchange.com.

"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," CMA Chief Executive Paul Muthaura noted.

The firm also 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). They are now purportedly being marketed as trading at Sh2,000  at its Coin Exchange.

The regualtor said  the Kencoin value was being marketed as exponentially rising since its initial offering poses substantive information asymmetry, liquidity and fraud risks.
 
CMA said it was investigating the operations of the firm. 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.

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Wiseman Talent VenturesCapital Markets Authority