Swiss Agency for financial market supervision (FINMA) eliminated companies that had deployed a fraudulent cryptocurrency project E-Coin.
In collaboration with DIGITAL TRADING AG and Marcelco Group AG company QUID PRO QUO has provided stakeholders with access to the online platform for trade and exchange of the cryptocurrency. During the year the company attracted $4.2 million (4 million francs) from several hundred customers. However, according to FINMA, the data of bitcoin is not stored in the distributed network based on blockchain technology, but the server QUID PRO QUO.
«Such activity resembles the opening of Bank deposits without an appropriate license is illegal,» said FINMA.
The office is also suspected of illegal activity with cryptocurrency company Finance Suisse GmbH, Euro Solution GmbH and Animax United LP, and investigating 11 cases of fraud with virtual currencies.
«FINMA welcomes innovation, but when innovation model are used in illegal activities, FINMA will prevent it», — reads the statement of the regulator.
In addition, FINMA warns holders of token E-Coin on two new (possibly fake) currencies, which they can offer to make the investment.
Recall that to ensure security and avoid fraud during the ICO, the Swiss non-profit organization Crypto Valley Association (CVA) began developing a «code of conduct ICO».