Posted on July 27th, 2017 by Fitch
STOCKHOLM, JULY 27, 2017 -The Board of Directors of XBT Provider AB (Publ) (the "Issuer") accepts, on behalf of the Issuer, the findings of the Disciplinary Committee of Nasdaq Stockholm in its decision of 23rd July, 2017 (the "Decision") and referenced in the associated press release of 27th July, 2017.
The Board wishes to stress that the substantial majority of the infractions to which the Decision related occurred within 2015 and the first six months of 2016, which was prior to the acquisition of the Issuer's group by the Global Advisors group (the most prominent former owner being, at the time of such acquisition, in bankruptcy). The Board regrets that Nasdaq's press release of 27th July, 2017 did not more prominently highlight the period in which the infractions occurred.
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. Additionally, no personnel from the period prior to Global Advisor's acquisition remain engaged by the Issuer.
The Board is gratified that the Disciplinary Committee recognised within its Decision both that the course of events concerning the substantial majority of the infractions was not within the control of the Issuer's new owners, as well as the improvements which have subsequently been made under the stewardship of Global Advisors.
Although disappointed by the fine imposed (equivalent to approximately 90,000 GBP or 120,000 USD) and the duration of the investigation which culminated in the Decision, the Board will arrange for its prompt settlement from the Issuer's reserves. Upon such settlement, the Board considers this matter to be comprehensively resolved.
The Board wishes to reassure the holders of the Issuer's listed certificates that:
The Issuer is pleased to confirm that it has extensive plans to expanding its current product offerings of digital-asset certificates and continues its mission to lead in the professionalisation of the cryptocurrency and blockchain markets:
"Our mission as a group is to help drive the development and professionalisation of bitcoin and cryptocurrencies as an asset class. For the sake of investors in the listed certificates and the bitcoin community at large, we are very fortunate that Global Advisors had the opportunity to turn around the management and professionalize the operations of the world's only exchange-traded bitcoin product." -Daniel Masters, Chairman XBT Provider AB (Publ).
The Issuer is committed to maintaining the highest standards of compliance with all applicable regulatory requirements and looks forward to a continuing productive and collaborative relationship with Nasdaq Stockholm.
About XBT Provider
XBT Provider AB (Publ) is the Swedish-domiciled issuer of Bitcoin Tracker One and Bitcoin Tracker Euro (COINXBT:SS, COINXBE:SS, respectively). These trackers are designed to mirror the return of the underlying asset, bitcoin (in Swedish Kronor and Euro, respectively). In 2015, Bitcoin Tracker One became the first bitcoin-referenced security available on a regulated exchange when it listed on NASDAQ OMX in Stockholm. Both certificates are available in 179 countries and are traded in the same manner as any other share or instrument listed on the Nasdaq exchange in Stockholm. The Issuer's Prospectus is approved by the Swedish FSA (Finansinspektionen) and its products are listed on Nasdaq Nordic in Stockholm. XBT Provider AB (Publ) is not a licensed financial advisor. The views presented in this release are the opinions of the Board of XBT Provider AB (Publ) and no other party. Bitcoin is a volatile asset and its price (and the price of securities that are referenced to it) can move quickly. Prospective investors in the Issuer's certificates should carefully consider the suitability of such an investment and, in connection with such a determination, should carefully read the Issuer's latest Prospectus (including, in particular, the risk warnings set out therein).
XBT Provider, AB