In the light of the recent regulatory decision to qualify crypto-mining schemes as collective investment untertakings under the EU framework, it’s pretty obvious that crypto-investment schemes are to be seen as Alternative Investment Funds (AIF) whose managers need a respective license from financial authorities. This is at least the case in Austria now. The Austrian Financial Market Authority (FMA) made clear that raising money from retail investors to run a crypto-mining operation is an Alternative Investment Fund (AIF) according to the respective EU directives.
Most Crypto-MLM’s bill themselves either as “automated trading” venture or as “crypto-mining” operation, i.e. they raise funds from investors to invest the proceeds into more or less algorithmic businesses with hardly any other operational activity. This absence of operational activity is one of the key criteria for Alternative Investment Funds (AIF)
The Austrian crypto-mining scheme WACHSENDE WERTE, founded and run by Dietmar JOWANKA, obviously already reacted to the regulator’s decision. Today, the scheme’s crypto-mining offer to investors was not available for potential investors (checked: May 30, 2018, 8pm). Clicking on “To the Offer” link on their website didn’t link us anywhere. Currently, you obviously cannot buy any crypto-mining packages. No further explanation is given on the website or on the blog. Moreover, all social media links on the website are inactive.
Hence, we could conclude that Wachsende Werte already followed the regulators instruction to halt the business. Just an educated guess.
We will continue to screen and research the other Austrian crypto-mining ventures over the next couple of days to track the impact of the regulator’s decision. The decisive question here is whether those crypto-mining schemes can survive without fresh funds coming in. Cautious investors should doubt that.