Switzerland shuts down providers of fake cryptocurrency E-Coin

Wealth


A Swiss financial watchdog has closed down providers of a “fake” cryptocurrency called E-Coin.

The latest regulatory step follows a series of moves from China to toughen up on bitcoin and other digital tokens, signaling frustration in the continent over the phenomenon.

According to the central European country’s Financial Market Supervisory Authority (FINMA), at least 4 million Swiss francs ($4.2 million) were paid to the developers of the sham cryptocurrency, who didn’t hold the required banking license.

FINMA said it has also taken action to bankrupt the accused parties, through legal proceedings.

“Generally, regarding Swiss regulation in the area of fintech/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 in an emailed statement.

An organization called the QUID PRO QUO Association was accused of manufacturing the fake digital coins, and working with two other entities, DIGITAL TRADING AG and Marcelo Group AG.

CNBC was not able to contact the accused parties at the time of publication.



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