The Czech Republic, most notably the country’s central bank has been turning sour against cryptocurrencies for a while now. However, they showed their true colors when a local crypto company, named Paralelní Polis released a new crypto token which they referred to as a coin in their whitepaper as well as their marketing campaigns.
According to a report from the central bank, Paralelní Polis will be receiving a serious fine for misleading investors in believing their new product is an actual coin. As many would be aware, coins are something that is exclusive for central banks to issue, and any private venture in this industry would immediately warrant an intervention, similar to what we see the central bank do right now.
The representatives of Paralelní Polis have commented on the issue saying that the coin will be referred to as a coin and there’s no law in the country that prevents them from using the term.
This is partially true, as the product being released by Paralelní Polis is essentially a security token, meaning it always changes price, but on a level which other cryptos don’t necessarily resemble.
For example, the silver coins that Paralelní Polis mints are pegged to BTC. Every silver coin is worth 0.1 BTC, meaning that its price constantly shifts alongside the market, thus making it a relatively safe investment for locals.
Why the sudden aversion
The decision to place a fine on Paralelní Polis is definitely not a surprise for most who have been paying attention to the Czech crypto market. The central bank has been very active in restricting the industry as much as possible, but not on a level that prevents these coins from being in circulation.