Swiss cryptocurrency miner investigated over ICO

July 27, 2018
Chris Wheal

Switzerland’s financial market regulator launched enforcement proceedings on Thursday against Envion, a cryptocurrency mining outfit, after a potentially unauthorized initial coin offering (ICO).

Envion, the cryptocurrency mining company is being investigated over its recent ICO

Envion, an off-grid crypto mining company, is being investigated by the Swiss Financial Market Supervisory Authority (FINMA), following its month-long ICO for the EVN token that was completed in January.

Banking law

The regulator is investigating “possible breaches of banking law resulting from the potentially unauthorized acceptance of public deposits” during the offering.

FINMA believes that Envion accepted SFr100m (around $100m) from more than 30,000 investors for issuing the EVN tokens in a bond-like form. The regulator said it would make no more comment until the proceedings were concluded.

ICO guidelines

The regulator said it was committed to ensuring that serious innovators can launch their ICO projects lawfully, but would take action against any ICO business models that violate or circumvent supervisory law.

FINMA set out ICO guidelines in September 2017, saying that due to the wide variety in the structure of ICO models, it would only carry out regulatory assessments on a case-by-case basis.

Envion declined to comment on the proceedings.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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