FINMA Launches Enforcement Proceedings Against ICO

The top financial watchdog in Switzerland has launched formal enforcement proceedings against an Initial Coin Offering (ICO).

Taking a Stand

Earlier in 2018, Live Bitcoin News reported that the Swiss Financial Market Supervisory Authority (FINMA) introduced ICO regulations within the country seeking to protect investors from potential fraudulent projects.

In an official press release, the country’s financial watchdog announced that it has launched formal enforcement proceedings against an ICO project called Envion AG. Allegedly, the project has accepted funds in an amount slightly upwards of $1,000,000 from over 30,000 investors in return for issuing EVN tokens in a form resembling bonds. The regulator alleges that the ICO was carried out in breaches of the country’s banking law.

Sentiment Remains Positive

The official press release reiterates on the importance of following the regulations set forth in February. In addition, though, the announcement says that:

FINMA consistently takes action against ICO business models, which violate or circumvent supervisory law. FINMA has also repeatedly drawn attention to the risks that ICOs pose for investors.

It’s noteworthy, though, that Switzerland is actively trying to become a global hub when it comes to cryptocurrencies. The country plays host to a range of different crypto startups.

Furthermore, SIX Group, the owner and operator of the country’s stock exchange, announced July 6th that it intends to launch a digital asset infrastructure aiming to facilitate investors in the field. The platform will be called SIX Digital Exchange (SDX) and it is intended to allow the tokenization of existing securities and of non-bankable assets. Ultimately, it aims to turn them into entirely tradeable assets.

SIX plans to introduce a fully-fledged suite of investment tools which includes a custody service for cryptocurrencies, a trading platform, and to create a “safe environment” for both issuing and trading various digital assets.

What do you think of FINMA’s move against Envion AG? Don’t hesitate to let us know in the comments below!

Image courtesy of Twitter/@FINMA_media