Citing regulatory considerations, Berlin-based safety token startup Neufund has introduced plans to freeze its fundraising campaigns and sideline future tokenized fairness choices.
“Many European countries had aspirations to become a blockchain-friendly hub … [T]he authorities have stifled this plan, blocking the innovation in its tracks,” the agency wrote in a weblog put up Monday.
Launched in 2016, Nefund helped allocate some $19 million in capital by way of novel fairness and safety token choices (STOs), together with a blockchain-based preliminary public providing in 2019. The agency claims to have some 11,000 traders throughout 123 international locations.
In a press release, Neufund CEO and co-founder Zoe Adamovicz mentioned the safety token venture couldn’t proceed to function in a regulatory gray space. No authorized motion was ever taken in opposition to the startup, but requests for steerage weren’t answered as a consequence of “fear of new technologies,” she mentioned.
“The problem is that nobody wants to take the responsibility for neither letting innovation happen, nor for banning it,” Adamovicz added in an e-mail to Fintech Zoom, inserting the blame squarely on the toes of Germany’s Federal Monetary Supervisory Authority (BaFin). “We were neither allowed, nor not allowed. BaFin’s default answer is to shy away from risk and responsibility.”
BaFin didn’t reply to Fintech Zoom’s questions by press time.
Adamovicz mentioned the agency will transition to a yet-unannounced venture. The present Neufund platform will likely be maintained together with all fairness tokens, wallets and post-investment actions, a weblog states.
Kyle Sonlin, founding father of Safety Token Market, instructed Fintech Zoom that allocating capital with a token providing requires “different financial players to act in sync.” His agency has seen an upsurge in requests as a consequence of compliance requests, he mentioned.
“To get an issuer to the finish line, it takes more cooperation than just providing one piece of the puzzle,” Sonlin mentioned.
The chief in blockchain information, Fintech Zoom is a media outlet that strives for the very best journalistic requirements and abides by a strict set of editorial insurance policies. Fintech Zoom is an impartial working subsidiary of Digital Foreign money Group, which invests in cryptocurrencies and blockchain startups.