Austrian Financial Regulator Halts Operations of Crypto Mining Platform

The Austrian Financial Market Authority (FMA) has banned the business activities of a Vienna-based cloud cryptocurrency mining company INVIA GmbH, according to an FMA press release published May 29.

The company was ordered to cease digital currencies mining operations on the grounds of suspicion of unauthorised management of an Alternative Investment Fund (AIF). The procedure concerning the prohibition is still pending. The press release adds the INVIA is neither supervised nor licensed by the FMA.

INVIA World, the company behind INVIA GmbH, offers mining of “profitable coins” like Bitcoin and Ethereum through an “intelligent mining system,” paying proceeds from mining operations to its users. Contrary to the FMA’s claims, the company asserts that it operates in compliance with EU legislature.

Earlier this month, US blockchain startup ShipChain was issued a cease-and-desist order from the South Carolina Attorney General's Office for violating the state’s securities statutes. Though it was claimed that ShipChain was unregistered with the securities regulator as a broker-dealer, the company subsequently refuted the claim.

Also this month, a Bitcoin investment company from Texas was issued a cease-and-desist order by the Texas State Security Board for offering unregistered securities and making deceiving statements that mislead investors.