Nasdaq Stockholm has imposed a fine on XBT Provider, a bitcoin investment company, amounting to SEK 1,000,000 for violating its rule book and other regulations.
Based in Sweden, XBT Provider is the issuer of Bitcoin Tracker One and Bitcoin Tracker Euro, which allows anyone to invest in Bitcoin as ETNs, exchange-traded notes.
Nasdaq Stockholm’s Disciplinary Committee found that “XBT has not complied with the internal routines and procedures supplied to Nasdaq in connection with its application…failing to ensure that the risk function reports to the Board… failing to implement an audit of the Company’s internet and IT security… failing to manage a significant change in operations in accordance with the Internal Rule Book.”
XBT also failed to publish information in the form of a press release through a news distributor, the release said.
In its official statement on the issue, XBT Provider said the majority of infringements outlined by Nasdaq occurred within 2015 and the first six months of 2016, which was prior to its acquisition by the Global Advisors group. It said that following the acquisition, an entirely new management team has been put in place, adding that no personnel from the period prior to Global Advisor's acquisition is now engaged by the company.
“The Board regrets that Nasdaq's press release of 27th July, 2017 did not more prominently highlight the period in which the infractions occurred”, XBT said. “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.”
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