Swiss FINMA Initiates Action Against Envion, an ICO Issuer

Swiss Financial Market Supervisory Authority (FINMA), the top financial regulator, has initiated enforcement proceedings against an Initial Coin Offering (ICO). Earlier this year, FINMA introduced ICO guidelines to safeguard investors from fraudulent projects and this may be the first time regulatory action is launched against an ICO project.

The regulator has announced that it is initiating enforcement proceedings against an ICO run by Envion AG. FINMA has accused Envion of breaching the country’s banking law. The blockchain startup has raised funds to the tune of 100 million Swiss francs from more than 30,000 investors by offering them EVN tokens that resembled bonds.

The official press release made by the company lays stress on the importance of regulations announced in February. The announcement further stated

“FINMA consistently takes action against ICO business models, which violate or circumvent supervisory law. FINMA has also repeatedly drawn attention to the risks that ICOs pose for investors.”

Switzerland is doing all that is necessary to create a friendly environment for blockchain startups. In fact, the Swiss city of Zug is perceived as the cryptovalley of Switzerland.

On July 6, SIX Group, which owns and operates the country’s stock exchange, is planning to launch a digital asset infrastructure. The platform, dubbed as SIX Digital Exchange (SDX), will facilitate tokenization of existing securities and even non-bankable assets. Over time, the platform aims to convert them into tradeable assets.

In this regard, SIX is working to launch a range of investment tools, including a cryptocurrency custody service, a trading platform and a secure environment for issuing and trading digital assets.