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Switzerland pulls off ‘fake’ E-Coin in latest cryptocurrency crackdown

Switzerland financial controller closes down the provider of fake cryptocurrency and is examining around a dozen other possible fraud cases. Therefore, the latest clamp-down on the risks involving virtual money.

The FINMA regulators comes accordingly from Chinese authorities ordering Beijing-based cryptocurrency exchanges to stop trading and immediately notify users of their closure.

Digital currencies like Bitcoin are issues and as their developers manages and not backing by a central bank. Therefore, they are hails by their supporters rapidly and efficient way of managing money. The traditional banks and regulators are eventually concerns about the risks of fraud in the burgeoning online cryptocurrency underworld.

Last week, Chief Executive JPMorgan, Jamie Dimon says Bitcoin, “is a fraud” and ultimately “end up”.

FINMA, Switzerland’s Financial Market Supervisory Authority says,

“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 license”.

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FINMA says, E-Coin was not like “real cryptocurrencies”. Since, it was not kept on distribute network using blockchain technology but was instead on local QUID PRO QUO’s servers. Therefore, it had three other companies on its warning list due to suspicious activity in cryptocurrencies. Later on, it conduct 11 investigations into other possible fake virtual currencies.

The Swiss finance industry has been looking for new avenues of growth following a wearying of its bank privacy rules during a global crackdown on tax evasion.

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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