PRAGUE — In the Czech Republic, a suspected scam is prompting calls for regulators to take a hot new crypto product more seriously.
When a high-profile ad campaign run by a company named Xixoio began promising huge returns to small investors last autumn, some in the media and fintech world questioned whether the claims were too good to be true. But authorities were powerless to do more than issue warnings.
There are “risks associated with offers of capital appreciation through alternative investment products, which are sometimes supported by a strong media presentation,” is how one Czech National Bank (CNB) alert in December meekly put it.
Virtual tokens “are not investment instruments in the sense of financial regulation,” the alert continued. “Investments in them are thus not subject to the supervision of the Czech National Bank.”
Some critics say regulators are partly to blame because they’ve been unwilling to take on the extra work of supervising…