Switzerland: FINMA closes down three crypto providers and warns of scams

The Swiss Financial Market Supervisory Authority (FINMA) draws three vendors, who have made millions of transactions with Cryptocurrencies. This communicated the supervision on Tuesday in a media message.

Swiss financial market supervision has taken place against QUID PRO QUO Association and the companies DIGITAL TRADING AG and Marcelco Group AG. Since 2016, QUID PRO QUO has therefore issued so-called e-coins for over a year, a self-developed Cryptocurrencies. Together with the other providers, they provided an online trading platform for their token and thus illegally invested more than four million francs. This activity was not justified without a special financial market authorization and finally forced FINMA to take action.

The offered E-Coin is not based on the blockchain, in contrast to real Cryptocurrencies, but is controlled by the publisher. Thus he lacks the decentralized aspect, which makes cryptry. In addition, the issuance of the e-coins did not meet the previously announced conditions, such as the fact that the token is 80% covered by assets. Instead, e-coins had been issued massively and completely without value, which would have diluted the token at the expense of the investors.

As a consequence, the association and the two companies were compulsorily liquidated by FINMA. Since all three providers were also over-indebted, a liquidation of bankruptcy was initiated directly. The financial market supervision has thus been able to secure around two million Swiss francs. The exact proceeds will only be quantified after the expiry of the procedure.

In addition to the direct activity, FINMA also warned on this occasion of possible fraudulent attempts by any Cryptocurrencies. Three other companies were placed on a warning list: Suisse Finance GmbH, Eurosolution GmbH and Animax United LP. In addition, interested investors should carefully weigh their dealings with any suspicious coins.

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