Cryptocurrencies

Issued: January 2023

Cryptocurrencies burst into the investing mainstream in 2017 as the values of some virtual coins and tokens skyrocketed, led by Bitcoin. Mainstream media now feature daily coverage of new cryptocurrencies, coin exchanges, and related investment products. Stories of “crypto millionaires” have attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments. But stories of those who bet big and lost are now starting to appear.

Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds. And because these products do not fall neatly into the existing federal/state regulatory framework, it may be easier for the promoters of these products to fleece you. Investing in cryptocurrencies and related financial products

What is a Cryptocurrency?

Cryptocurrencies are digital assets created by companies or individuals that take the form of a virtual coin or token. Anyone can create a cryptocurrency. Cryptocurrencies are intangible and exist only on the internet. Central banks and other governmental authorities do not insure or control cryptocurrencies. You cannot always exchange them for other fiat currencies (i.e., currencies declared “legal tender” by governments), such as the U.S. or EUR  or EU.

Cryptocurrencies trade on unregulated, opaque exchanges on which there may be little or no opportunity to independently verify their true market value. And given the newness and uniqueness of cryptocurrencies and related instruments, they do not yet have a clear place in the existing framework of financial regulation. Federal and state regulators are actively working to combat cryptocurrency-related frauds and to develop legislative or rule changes that will establish a more appropriate regulatory framework for cryptocurrencies. Investors should be aware that, at least for now, cryptocurrencies and related instruments trade without the investor protections that regulation provides.

Federal and state regulators are actively working to combat cryptocurrency-related frauds and to develop legislative or rule changes that will establish a more appropriate regulatory framework for cryptocurrencies.

Investors should be aware that, at least for now, cryptocurrencies and related instruments trade without the investor protections that regulation provides. 

Crypto-Investment Products

Investors looking to get in on what some people consider a modern-day gold rush are finding new investment options opening up to them all the time. Many of these solicitations are marketed aggressively through social media. For example, there are initial coin offerings (ICOs) or initial

token offerings (ITOs). When an issuer makes an ICO or ITO, it sells “coins” or “tokens” in order to fund a proposed project. These coins or tokens are not the same as common stock or other securities.

While these offerings may sound like an initial public offering (IPO), they could not be more different. IPOs operate in a highly regulated environment. While securities or commodities regulations apply to ICOs and ITOs, many are unregistered and operate outside of these investor protection regulatory requirements. Investors also are being pitched crypto- investment funds that pool investors’ assets in order to give them exposure to cryptocurrencies and ICOs or ITOs. Even some public companies are trying to cash in on the crypto-craze by changing their business models and names to attract capital.

Atadel Fund urges its customers to be extremely careful when investing in any type of cryptocurrency. Check with our experts. We will help you understand the complex world of cryptocurrencies and save your assets from the risk of loss.

Atadel Fund s.r.o. never invests in risky assets and strategies.

Atadel Fund s.r.o. cooperates only with KRAKEN crypto exchange, which has state regulation.

Kraken is the world’s largest global digital asset exchange based on euro volume and liquidity. Kraken’s global client base trades over 200 digital assets and 8 different fiat currencies, including GBP, AED, EUR, USD, CAD, JPY, CHF and AUD.

Founded in 2011, Kraken was the first U.S. crypto firm to receive a state-chartered banking license, as well as one of the first exchanges to offer spot trading with margin, regulated derivatives and index services. Kraken is trusted by millions of traders, institutions and authorities around the world and offers professional, around the clock online support.

Kraken is backed by investors including Tribe Capital, Hummingbird Ventures, Blockchain Capital and Digital Currency Group, among others.

Kraken is regulated by FinCEN. Kraken client funds are held directly by clients in their own bank accounts at our partner banks, which are heavily regulated. Kraken Bank is regulated by the Wyoming division of banking.

Kraken is registered as a Money Services Business (MSB) with:

FinCEN in USA — registration number 31000176593851.

FINTRAC in Canada — registration number M19343731.

In the United Kingdom, CryptoFacilities Ltd. is authorised and regulated by the Financial Conduct Authority (FCA), with Firm Reference Number 757895 and is also a registered cryptoasset firm under the Money Laundering Regulations. 

In Australia, Kraken (as the entity "Bit Trade Pty Limited") is registered as a Digital Currency Exchange and regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC)

ABN: 42 163 237 634

ACN: 163 237 634

In the United Kingdom, Payward Ltd. is a registered cryptoasset firm with the FCA under the Money Laundering Regualtions (registration number 928768).

Payward Europe Solutions, Ltd. Italian Branch is registered with the Organismo Agenti e Mediatori ("OAM") with Registration Number PSV35.

Payward Asia, K.K. is registered as a Crypto Asset Exchange Operator with the FSA in Japan. Registration Number: Director-General of Kanto Local Finance Bureau No. 00022

For more information, please see our AML Policy and Privacy Notice.

Payward MENA Holding Limited is a company registered at Unit 1, Floor 7, Al Khatem Tower, ADGM Square, Al Maryah Island, Abu Dhabi, UAE, and is authorized and regulated by the Financial Services Regulatory Authority (Financial Services Permission Number 190008) under the laws of Abu Dhabi Global Market.