Due to regulatory concerns, Berlin-based securities token start-up Neufund has decided to close the securities token market.

“Many European companies now want to become Blockchain-friendly centers, but authorities have suppressed this plan and prevented innovation,” the company said on Monday.

Founded in 2016, Neufund helped raise an investment of $ 19 million in 2019 thanks to the supply of securities token, which included the first blockchain-based IPO. The company states that it has nearly 11 thousand investors in 123 countries.

Zoe Adamovicz, Neufund CEO and founder, stated that the securities token project could not continue in a gray area regarding regulation. Adamovicz also announced that no legal action was taken against his company, but his requests were not answered due to “fear of new technology”.

Speaking to CoinDesk and leaving the responsibility to the German Federal Financial Authority (BaFin), Adamovicz added:

“Obviously the problem here is that nobody wants to take responsibility for allowing or banning innovations. Our operations were not allowed, but the ban was not imposed. BaFin almost escapes risk and responsibility ”

No response or explanation has been received from BaFin yet.

Adamovicz stated that the company will evolve towards a project that has not been announced yet. The company’s statement said that the current Neufund platform will continue to operate for all asset tokens, wallets and future investment movements.

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