The issuer of bitcoin exchange traded notes was found to be in several violations of Nasdaq’s listing rules and subsequently fined, the exchange announced on Thursday. However, XBT Provider argues that most of the violations occurred prior to its acquisition by Global Advisors.
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The Disciplinary Committee of Nasdaq Stockholm announced on Thursday that it has imposed a fine of SEK 1,000,000 (approximately $121,698) on XBT Provider for breach of its “Rule Book for Issuers of warrants and certificates and other regulations in several respects.”
XBT Provider is the issuer of Europe’s only bitcoin exchange traded notes (ETNs), Bitcoin Tracker One and Bitcoin Tracker Eur, which are both listed on the Nasdaq Nordic exchange in Stockholm.
When the two ETNs were admitted to list and trade on the Nasdaq exchange, the company agreed to comply with the exchange’s Rule Book, explained Nasdaq.
However, the exchange has found that the company failed to comply with the internal routines and procedures provided in conjunction with its application. Specifically, it has failed:to ensure that the risk function reported to the Board of Directors, to carry out an audit of the company’s intranet and IT security, to handle a material change in the operations in accordance with the Internal Rules, and to ensure that the regulatory compl...