Tag : FINMA

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$100 Million Initial Coin Offering Project in Trouble

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Envion AG, the issuer of a $100 million is in trouble with the Swiss Financial Market Supervisory Authority. The Swiss FINMA has announced the launch of proceedings against Envion AG.
The press release by the Swiss FINMA has revealed the intent of the regulator to enforce proceedings against the ICO issuer. This announcement comes in light of the fact that the Swiss regulators have come across incriminating evidence. The FINMA has reasons to believe that Envion AG has breached financial market law with their Initial Coin Offering. This is a result of the company accepting public deposits for the ICO of the EVN token.
Investigations carried out by the FINMA have revealed that Envion AG has accepted public funds of over $100 million. With over 30,000 investors on board, they’ve promised them EVN tokens in a bond like form.
Envion AG Making Headlines for Second Time
This is the second time Envion AG has made its way into headlines this year. The whitepaper launched by the company starts off with the legal disclaimer. It states that the US Securities and Exchange Commission and the Swiss FINMA have not approved investments. It’s not just these two major financial authorities. No financial authority has approved the investment into their tokens.
That being said, the disclaimer adds that the token can is identifiable as a security. The ICO promises holders of the tokens with profits resulting from mining operations. That means the token is also subject to regulations under the US securities laws. The disclaimer adds that the ICO is compliant with said laws. It restricts US citizens and green card holders from access to the category of accredited investors. This is in compliance with Rule 506 (4) of the US Security Act Regulation D.
The Swiss Financial Market Supervisory Authority will not be making any further announcements. They want to bring the matter to a conclusion before they elaborate on the whole ordeal.
This is an interesting development considering the current state of affairs. May of 2018 saw the New York Times publish an article about Envion AG. The article elaborated that the creators of the company have been accusing one another of fraud. This has been a result of the founders losing control over their own company.
With the announcement of the Swiss Financial Market Supervisory Authority pursuing proceedings against Envion, things are looking to become even more interesting. The result of the FINMA inquiry remains to be seen.

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Self Regulation Only Way Forward for Blockchain Technology – Swiss Crypto Executive

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Self regulation is the only way forward for blockchain technology. This is the opinion of a director at the Switzerland based Crypto Valley Association. Cecilla Mueller Chen believes that it’s the best way to accelerate the technology while protecting the interests of all stakeholders.

The director at Zug was discussing this issue at the third general assembly of the Philippine Association of Digital Commerce and Decentralized Industry. The conference was taking place in Makati City where Chen spoke using her experience in the cryptocurrency world. She spoke of Crypto Valley’s collective experience. This is a cryptocurrency-centric group of companies which operate in Zug. The Swiss FINMA has declared Zug to be a self regulatory organization. FINMA is the financial market supervisory authority in Switzerland.

Chen believes that self regulation is the only way to go. The foremost reason for that is that it’s the fastest route. Instead of waiting around for government regulators to come up with a set of rules, the rules they will come up with will definitely conflict with the interests of the blockchain world. It would be fruitless and it can hinder the growth of blockchain technology.

While she believes self regulation is necessary, she also stressed that it is a big responsibility. The community will need to work together. They will have to make sure everybody is behaving in an appropriate manner. All the actors have to protect the interests of investors and consumers.

This is why FINMA has allowed Crypto Valley Association to create their own policies. This has allowed Zug to become a proper blockchain technology hub in the world. Other than blockchain technology, Zug is also a good place to garner hedge funds. The ease of doing business in Switzerland makes it the haven that it is.

Chen believes that if a community wants to make itself an SRO, it needs to draft a code of conduct. That should be the first order of business for them. They need to work on creating a lasting value by building a strong reputation.

She emphasized on the importance of the group’s reputation. None of the members of the community should be involved in criminal activities. That’s the only way the SRO will be a viable option.

The first general assembly of the PADCDI happened in May this year and it led to the creation of the SRO. One of the main objectives for it is to work with the Philippine government. That way, they can draft policies and rules which can encourage mass adoption of blockchain in the country.