HomeCryptocurrencyBitcoinBitcoin Investment Vehicle Fined $120k by Nasdaq Exchange

Bitcoin Investment Vehicle Fined $120k by Nasdaq Exchange


The provider of a publicly traded bitcoin exchange-traded note (ETN) has been fined over $120,000 by Nasdaq Stockholm for infractions of exchange rules and financial regulations.

The stock exchange’s Disciplinary Committee announced today that it had levied the fine because the company, XBT Provider, violated provisions in its Internal Rule Book and certain regulations of the Financial Instruments Trading Act.

As the result of its finding, the committee handed down a penalty of 1 million Swedish krona – an amount worth approximately $122,000 at press time.

Among those violations, according to the statement, were “failing to ensure that the risk function reports to the board” and “failing to implement an audit of the company’s internet and IT security.” The release also pointed to infractions related to annual reporting requirements.

The fine comes more than two years after regulators in Sweden first approved the ETN, which affords investors exposure to bitcoin without requiring them to actually purchase the cryptocurrency.

In a statement, XBT Provider’s board of directors said that it accepted the decision, highlighting that “the substantial majority of the infractions … occurred within 2015 and the first six months of 2016.” During that period, XBT Provider was owned by the company behind bitcoin mining firm KnCMiner.

“Since acquisition by the Global Advisors group an entirely new management team has been put in place, a major and comprehensive remediation project has been completed and the issuer’s assets under management has grown ten-fold,” the board said. “Additionally, no personnel from the period prior to Global Advisor’s acquisition remain engaged by the issuer.”

The news comes soon after the ETN’s issuer revealed a major partnership in the UK.

Last month, XBT Provider announced that it was working with Hargreaves Lansdown, a decades-old asset manager, allowing their customers to purchase shares in the ETN.


Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result of the platform's recent registration with the...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that more than 24,000 ATMs in Brazil will...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced the completion of its most recent funding...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both confirmed that the regulator is taking into...

Follow us


Most Popular