Fake E-Coins liquidated by FINMA
The Swiss Financial Market Supervisory Authority closed down unauthorised providers of the fake cryptocurrency E-Coin, triggering bankruptcy proceedings against any legal entities involved.
Because E-Coins did not use blockchain technology and instead were under the providers’ control, they are not considered to be true cryptocurrency.
Since 2016, E-Coins were issued by QUID PRO QUO Association, working together with Digital Tranding AG and Marcelco Group AG.
According to FINMA “the association gave interested parties access to an online platform on which E-Coins could be traded and transferred. Via this platform, these three legal entities accepted funds amounting to at least four million Swiss francs from several hundred users and operated virtual accounts for them in both legal tender and E-Coins. This activity is similar to the deposit-taking business of a bank and is illegal unless the company in question holds the relevant financial market licence.”
The serious breach of regulations by failing to obtain authorized license led to the liquidation of the Association and two Companies.