Rumors of closing BitConnect in the UK refer to an older filing and a demand to provide proof that the company is still active.
While we previously reported that BitConnect may have come under scrutiny from the UK authorities, the oversight so far has been related to the company's activity and status.A more up-to-date filing of BitConnect is under the title of BITCONNECT INTERNATIONAL PLC. As such, the company is up to date on its filings, listing directors and related persons. The shutdown notice was for a company named BITCONNECT LTD.
At the same time, the cryptocurrency community is becoming more aware of the threat of BitConnect and its pyramid-like structure. And while so far there are no official reports, awareness of the faults of BitConnect in reaping Bitcoin in exchange for BCC tokens is spreading wider.It seems like the regulators' notes was related to an older company and had nothing to do with hypothetically running a Ponzi scheme. Rather, the mechanisms of doing business in the UK require regular proof that the company is active.
BitConnect is the biggest and most prominent scheme for fast returns related to Bitcoin. But similar schemes are coming up, such as ETHConnect and even NeoConnect, having a similar business model:
The BitConnect market price has been rising as well in unison with Bitcoin, as the leading coin headed above $7,500 once again. Thus, BitConnect assures it gets a steady inflow of Bitcoins. And as soon as Bitcoin is strong, BitConnect would be able to supply the investors with the promised daily payout. Given that BitConnect has been running since Bitcoin was at a much lower price, the reserves would help it run much longer than a typical pyramid scheme.
BitConnect still gathers funds in Bitcoin and pays them out in cash.
For more information and to sign up for Bitconnect click here.