German Financial Regulator Bafin Intervenes in RISE Trading ICO for the First Time
For the first time, German financial markets regulator Bafin has intervened in a ICO project. The German media channel, Handelsblatt reported that late last year, the regulator stopped a planned initial coin offering (ICO) calling it a “paradigm shift,” as for a long time, the authority has been only watching the crypt space from afar.
The ICO in question was planned by a Munich-based automated algorithmic trading company called RISE. The ICO was worth 120 million euros that is about $135 million that was stopped by Bafin towards the end of 2018.
This novelty among the financial supervisors that is Bafin’s approach has been criticized by the consumer advocates which the channel called out a warning signal for the crypto industry.
Back in October, Rise, a software technology company that also works on the Artificial Intelligence (AI) financial trading technology has shared its plans to Democratize Hedge-Fund Trading Technology.
Stefan Tittel, the CEO of Rise that trade indices, options, stocks, and cryptocurrencies by using “systematic, automatic, algorithm-based trading systems along with AI says,
“We have been developing and researching since 2012.”
A number of points worked against the company as it started with the officials asking them not to advertise the Bafin licensing of asset management as it was “misleading.” They were also involved with Envion, another German ICO that “failed spectacularly,” in 2018.
Apparently, the company's website exaggerated the number of employees and they further overlapped with Envion’s. Moreover, the company not only didn’t saw any significant sales rather have been in loss for years.
Back in October, as we reported, Bafin president had called out a warning to the ICO investors, however, he did say that they don't want to stifle the inovation but dangers must be prevented at the same time.
Meanwhile, its neighbour country, France has said that cryptocurrencies can be issued as long as the ones behind them agree to be taxed and regulated.