The hammer is coming down again on the Karatbars ecosystem as German and South African regulators have taken separate actions over sales of a purportedly gold-backed cryptocurrency.
A cease-and-desist order against Karatbit Foundation on Oct. 21 for issuing its KaratGold Coin without necessary licensing in the country.
South Africa's Financial Sector Conduct Authority warned consumers to avoid investments offered by Karatbars International GmbH, a German firm that promotes the allegedly gold-backed KaratGold Coin.
Run on the ethereum blockchain, the KaratGold Coin is listed on about 30 exchanges such as Yobit, with a second token, KaratBank Coin, yet to launch.
The Belize-based Karatbit Foundation is the issuer of the KaratBank Coin and manager of the Karatbank ecosystem, according to the KaratBank Coin white paper.
Karatbars International has denied accusations leveled in German business publication Handlesblatt, according to a company Facebook posting.
Harald Seiz, CEO of Karatbars, further said in the Facebook post that the German finance regulator is mistaken in its order against the firm, basing its actions on a scam website not associated with his firm.
Seiz also said KaratGold Coin is a utility token and therefore "Not subject to prospectus" requirements under BaFin regulations and certain interpretations of European Banking Authority guidance.
As stated in that earlier report, although Karatbars has promoted a supposedly licensed "Cryptocurrency bank" in Miami, the Florida Office of Financial Regulation has stated that Karatbars is not licensed as a bank with the regulator.
HitBTC used to list KaratGold Coin, but it recently delisted the cryptocurrency.
German Regulator Orders 'KaratGold Coin' Issuer to Cease Operations
Publicado en Nov 15, 2019
by Coindesk | Publicado en Coinage
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