Switzerland shuts down 'fake' E-Coin in latest cryptocurrency crackdown

After China’s crackdown on the growth of cryptocurrencies, Switzerland’s financial watchdog, Financial Market Supervisory Authority (FINMA) has closed down the provider of a fake cryptocurrency, in the latest clamp-down on the risks involving virtual money, Reuters reports.

FINMA said in a statement on Tuesday: The QUID PRO QUO Association shut down by FINMA had provided so-called E-Coins for more than a year and had amassed funds of at least 4 million Swiss francs ($4.2 million) from several hundred users.

“This activity is similar to the deposit-taking business of a bank and is illegal unless the company in question holds the relevant financial market license,” FINMA noted.