
Switzerland`s financial market authority board has just issued a warning on fake cryptocurrencies, and shuts down providers of alleged scam coin, E-COIN.

In the Announcement, FINMA stated that the providers of E-Coin has reportedly received some million swiss francs made from public deposits, without having a valid banking licence, however some legal entities were involved in the E-Coins production and has been launched bankruptcy proceedings by finma against the legal entities.

The coin E-coin is said to not be backed by any assets, stored on distributed networks or even using the blockchain technology just like other real cryptos, thus they have the coin in their own control in their servers, forcing people to believe that it is an actual and real cryptocurrency which is not.

Finma has placed three companies on its watch list and has issued a stern warning to providers of fake cryptocurrencies and those still under production.

FINMA welcomes innovation, but when innovative business models are misused for unauthorised activities, FINMA intervenes.

The regulatory board has said that it has liquidated the assets of the three companies involved in the production of the scam coin and has started another round of investigations on other companies with similar scam coins.

Switzerland has been a country which has been rapidly developing in the financial technology sector and is a friendly country to Cryptocurrencies, especially Bitcoin, of which chiasso, a city in switzerland recently started accepting bitcoin for tax payments.