In accordance with a FINMA press release dated 26th July, Envion AG has been accused of selling its EVN token illegitimately.
The newly assembled venture provides a disrupting solution to Mobile Blockchain Mining, making the most of renewable energies. Envion, based in Switzerland, finished off its ICO (initial coin offering) in mid-january this year. As inspected by the Swiss Financial Market Supervisory Authority (FINMA), Envion made a collection of around 100 million Francs (around $100.01 million at that time) from over 30,000 investors during its one month long ICO. The price was received in exchange for the unlicensed issue of EVN coins “in a bond-like form.”
The Swiss monitory body is reported to have laid down a set of guidelines just the previous year. In September 2017, it had been clearly mentioned what would be the basic requirements for the procedure concerning domestic ICOs. The published document also laid special emphasis on the need of a ‘banking license’, prior to welcoming any public deposits.
However, the proceedings of the accused concern violation of similar guidelines. As per the statement, “the lawsuit centers around possible breaches of banking law resulting from the potentially unauthorized acceptance of public deposits through sale of EVN tokens.”
The FINMA has staunchly declined any further comment on the case until the proceedings are terminated and a verdict declared. The Swiss context tells an altogether different story. While no substantial statement was delivered by FINMA, the Swiss version provides a sturdy and variegated framework for ICOs. FINMA recently released their latest version of the framework in mid-February of this year, approximately a month after the conclusion of ENVION’s fundraising campaign phase.