Neufund crypto platform announces closure due to legal vacuum in Germany

06/23/2020

ForkLog

German Security Token PlatformNeufund announced the closure due to government inaction on the cryptocurrency industry. The company announced this in its blog.

The project was launched in 2016 and during its work helped to raise more than $ 19 million through STO and IPO on the blockchain. According to its own data, the firm has 11,000 investors from 123 countries.

In September last year, Neufund launched a tokenized share offerings platform targeted at retail investors in Liechtenstein.

CoinDesk comments co-founder and CEOof the company Zoya Adamovich noted that during all this time the startup has never faced opposition from regulators, but the authorities also refused to provide any clarity regarding the company's activities. She believes that the reason for this is fear of new technologies.

“The problem is no one wants to take responsibility for either innovation or banning it,” she told CoinDesk in a comment.

She added that her company has repeatedlyasked the German Federal Financial Supervisory Authority (BaFin) for clarification. During all this time, Neufund has not received any direct permission or prohibition.

Adamovich clarified that the company will continue to support previously issued tokens and transform into another project, the details of which will be announced later.

As a reminder, in March BaFin classified digital assets as financial instruments.