Swiss regulator FINMA Fake E-Coin warning


Swiss regulator has seized millions of francs linked to Quid Pro Quo Association, which issued the E-Coins. In order to curb violations, Swiss regulator FINMA Fake E-Coin warning was issued.

21 September, AtoZForexSwiss financial watchdog has shut down a "fake" cryptocurrency providers called E-Coin, amid fears that investors may have been conned out of millions of francs.

Swiss regulator FINMA Fake E-Coin warning

The step follows as China in the bid to toughen up on bitcoin and other digital tokens. And signaling frustration in the continent over the phenomenon. The consortium handled investors’ money without having the necessary banking license.

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According to the central European country's Financial Market Supervisory Authority (FINMA), the fake cryptocurrency developers earned illegally at least 4 million Swiss francs ($4.2 million). FINMA said it has also taken action to bankrupt the accused parties.

FINMA accuses QUID PRO QUO Association of fake coins production

"Generally, regarding Swiss regulation in the area of cryptocurrency, I can state that FINMA as supervisory authority applies the currently applicable financial market regulation and intervenes if regulations are breached," a spokesman for FINMA said.

The regulator accused the QUID PRO QUO Association of manufacturing the fake digital coins. It claims the organization is working with two other entities, DIGITAL TRADING AG, and Marcelo Group AG.

Moreover, the watchdog said that E-Coins bore no similarity to cryptocurrencies. The scam firms deceive investors into believing the tangible assets will give 80 percent of digital cash.

"Moreover, We have issued substantial tranches of E-Coins, leading to a progressive dilution of the E-Coin system," the watchdog said.

FINMA also said it is investigating 11 other suspected activities related to fake crypto coins. The Swiss authority warned investors to protect themselves from such hoaxes.

JP Morgan CEO slammed bitcoin as 'fraud'

JP Morgan CEO Jamie Dimon last week referred to bitcoin, as "a fraud" that will eventually "blow up". With increased regulatory activity, Dimon's comments appeared to weigh on the asset heavily, as it fell 8.7 percent the following day.

Chinese financial authorities have put increased pressure on bitcoin and other currencies in recent weeks.

Earlier this month, several government administrations including the People's Bank of China announced a ban on initial coin offerings (ICOs), due to concerns over fraudulent practices.

And last week the country said it would close down domestic bitcoin exchanges. One of China's biggest cryptocurrency exchanges, BTC China, said it would close following the announcement.

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