Another day, another ICO probe. This time, it is Lithuania’s central bank which will start probing a local ICO. The local ICO is the Bankera ICO which have already raised more than 100 million euros.
The reason behind the probe came after the central bank determined that the token is offered as security and there is no product backing it up until now.
A statement was also released by Feb. 15 regarding the contact with the Bankera, the blockchain banking firm. The contact has been done by Lietuvos Bankas and it is regarding the token sale. The token sale aims to end next week.
He also added, “In addition, [the ICO] distributes its authorized [cryptocurrency] and has already attracted more than 80 million [euros]. Taking into account the features set out in the heading and based on the information provided by Bankera’s business plan, it is concluded that this ICO falls within the scope of the Law on Securities, i.e. is considered a public offer, and therefore must be executed in accordance with the established requirements.”
The central bank’s stance on unregulated ICO‘s looks stiff. They also suggested that more action can be taken against ICO’s. Moreover, they also issued warning for the advertisers who are advertising the token sale.
Moreover, the central bank also added, “The Bank of Lithuania also draws attention of other media to the requirements of legal acts regarding the dissemination and promotion of instruments possessing the features of securities, and recalls that the Law on Advertising prohibits the advertising of activities that violate the requirements of legal acts,”
That’s a huge step towards regulating or controlling fraud ICOs and stepping forward to protect people’s money.
Lithuania has already released guidelines a few months back. However, this is the first time they are preparing to take action against a token sale.