Demand for virtual currency services, including custody services, has soared in the past several years. Like their counterparts in traditional finance, these custodians are stewards of retail and institutional customer funds and serve an important and valuable function. However, as evidenced by a number of headline-grabbing failures during the lingering crypto winter, inadequate disclosures and poor custodial practices can seriously harm retail and institutional customers alike.
General context
The statutory regulation of cryptocurrency in Russia is yet to be made compatible with the current dynamics of digital assets.
The Swiss court in Zug, the Handelsblatt, Trado GmbH, Bloomberg and a shareholder of Envion AG have now confirmed that the bankruptcy court of Zug decided to liquidate Envion AG on 14 November 2018.
As already reported, the reason for initiating liquidation was that Envion AG did not appoint an auditor within the time limit set by the court. Envion AG therefore suffers from a so-called "lack of organs" which, according to Swiss law, leads to the liquidation of the company in the absence of remedy.
Demand for virtual currency services, including custody services, has soared in the past several years. Like their counterparts in traditional finance, these custodians are stewards of retail and institutional customer funds and serve an important and valuable function. However, as evidenced by a number of headline-grabbing failures during the lingering crypto winter, inadequate disclosures and poor custodial practices can seriously harm retail and institutional customers alike.