Startup ICO Gets Slapped By Swiss Financial Watchdog
Crypto needs to be monitored from these criminals. Here's why.
Isn't it always the case that a new crypto offering faces scrutiny in the arena of constant ID theft, swindling and illegal venture? Such is the effort of your everyday black-hat mogul leveraging a system for freakish gains at the expense of the integrity of society all because of the new technology. That is a fact: cryptocurrency is volatile not due to its unreliability, but due to how many would want to take advantage of the seamless-ness and efficiency of what the blockchain heralds as the new financial age. Thankfully we watchdog FINMA on point to ensure no cahoots are carried on with crypto!
Here's the Skinny on Cryptocurrency Capers in the Swiss Alps of Financial Fare
Thanks to FINMA, monitoring discovered one Swiss firm, Envion AG, currently liquidating, with an acceptance of more than 90 million francs. For those Americans out there, that's $91MM paid out between at least 37K investors in exchange for tokens resembling bonds.
The problem with that is those bonds held no license, making them illegal. Moreover, conditions under issuance of those tokens weren't equal between all investors, not meeting minimum requirements with no internal audit process. Who knew cryptocurrency investment had certain legal guidelines? That's a no-brainer. After all, this involves other people's money, invested in an offering with no viable, visible or malleable return on investment. It's, in general, all in good faith.
To protect those investors, guidelines do have to be in place.
The word is, though, that Envion wasn't intending to misappropriate funds, which would of course damage investors. That doesn't discount the fact that it was against the law.
Still, Fundraising Has Come a Long Way With Respect to Cryptocurrency Technology
But not without its hiccups, cyber-terrorism, and risk of fraud or lack of transparency. Startups can basically raise capital -- digitally. Virtual tokens make it quite easy. Regulators, though, see warning signs.
The fact is many states, including Switzerland, look at ICOs as only securities. Therefore there are certain rules applied when focused on traditional capital markets. The investments aren't hard currency -- therefore there's room for manipulation due to volatility and the constant upswing and downward spiral of the Bitcoin and other cryptos that continually fluctuate. Trading laws get enforced quite a bit more in this case.
Other countries, though -- like China and India -- don't even consider ICOs. There's just way too much that could go wrong. However that doesn't stop the ever-growing expansion of ICOs and STOs doubling, more than 1K from this past year, remaining as the pinnacle of what we could call Crypto Valley.
Undoubtedly There Is a Risk as Envion Has Experienced -- But How Else Would You Succeed?
Sometimes you just have to take some risks -- especially on a brand-new playing field. You might lose or slip up or foul, but that's the name of the game. It doesn't mean the crypto game is over. You're just learning, experiencing and evolving. Be sure, though, you're really learning and not simply trying to find "loopholes" in a system. You'll continually get into a lot of trouble.
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