The Austrian Financial Market Authority (FMA) after suspecting that INVIA GmbH was involved in unauthorized management of an Alternative Investment Fund (AIF) has decided to ban its business activities with immediate effect. The Vienna-based cloud cryptocurrency mining company has over the years focused on digital currencies mining operations.

Latest developments

The South Carolina Attorney General’s Office directed a cease-and-desist order to ShipChain which happens to be a US blockchain startup. ShipChain was accused of violating the securities statutes of the state.

The Texas State Security Board recently issued a cease-and-desist order to a Bitcoin investment company found in the state. According to it, the business guru had been offering unregistered securities as well as making statements full of deceit that misled quite a significant number of investors.

It is the first time that FMA is bringing the operations of a cryptocurrency mining firm to a standstill. Last year, FMA asserted that OneCoin had to quit the issuance and administration of payment instruments.

OneCoin is currently lacking in terms of what it requires to undertake banking transactions in Austria-the sort that requires a license. Barring OneCoin from administering payment instruments such as banker’s drafts, credit cards and traveler’s cheques on a commercial basis was something that most of the people did not see coming.

There is need to regulate cryptocurrencies

John Griffith-Jones, Chairman of the FCA in March outlined that it was crucial to regulate cryptocurrencies. According to him, it was the best way to ensure that the various consumers were not harmed. Market observers opined that the agency needs to move out strongly to initiate a civil action to halt operations for the various organizations as well as freeze their respective assets.

The agency also agrees that cryptocurrencies are with the passage of time becoming a matter of growing interest to markets and regulators around the world. It has affirmed that cryptocurrencies do not fall under its authority.

However, it doesn’t dispute that some models of cryptocurrency usage end up placing them under its sphere of regulatory authority. If all moves according to plan, before the year comes to a close views on cryptocurrencies might get published.

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