Colón Fútbol launched the Colón Coin in the middle of last year, and became the first Uruguayan team to implement a cryptocurrency. This would be guaranteed by shares of Dale Verde SAD, the company in charge of football at the club that plays in the third category of the Uruguayan Football Association (AUF).
From a note published by The Observerlast year the Superintendency of Financial Services of the Central Bank of Uruguay (BCU) requested more information from the SAD about the projected business, according to El País this Friday.
Background
The BCU resolution to which you agreed The Observerrealize that the July 20, 2022 A meeting was held at the bank building, with the participation of officials from the Superintendence, the owner of the company BIT1950 – in charge of the cryptocurrency business, Alfredo Regueira, and the president of the SAD, Marcelo Rifas.
The BCU points out that from what was stated by Regueira and Rifas it appears that The tokens would be issued through a platform operated by BIT1950, backed by the club’s shares, and they could only be bought or sold on said platform.
The launch of the offer would be carried out through social networks and the press. Besides, The buyer of the cryptocurrencies would have the right to participate in a percentage of the profits received from the club, in proportion to the number of tokens they have acquired.
On the other hand, they indicated that they would issue 1 million tokens, 70% of them would be kept in custody of BIT1950 and the rest would be sold through the platform. 30% of the shares of the sports corporation would remain as collateral for the 300,000 tokens to be sold through the platform.
Finally, there would be no limitation on the number of people who could participate in the business, or the number of virtual assets that could be acquired individually.
Camilo dos Santos
José Ramírez, manager of SAD Dale Verde, Marcelo Rifas, president of Dale Verde and Alfredo Regueira during the presentation at the Centenario Stadium last year.
Additional Information
On that occasion, the BCU requested additional information, as well as the presentation of the terms and conditions of the business and a copy of all the documentation that would be made available to investors. In addition, it granted a period of 5 business days for its remission, which was pending in April of this year.
On December 6 of last year, a preview of the draft resolution was granted to the parties. Rifas responded on January 11, 2023 and Regueira did not acknowledge receipt of it, according to the regulator.
In this instance, Rifas pointed out about the commercial collaboration agreement that “At the time the project was signed, it was not taken into account that it could be framed within the scope of the public offering of securities, and that the project was not completed on the date agreed in the agreement (with BIT 1950) – 31 August 2022 – unknown at what stage it was”. He added that talks had begun to terminate the agreement out of court.
The resolution of the BCU
Based on the information collected, The BCU indicated that the apparent fact that there is an issuer, a right on the part of the holder of the “token” to receive a certain dividend, and an offer to the general public could frame the projected business within the scope of the public offering of securities, activity regulated and supervised by the entity.
And that the lack of presentation of the required information and documentation “prevents” determine with certainty if the projected operation is within the figures regulated and supervised by this Central Bank.
So, The BCU decided to instruct Dale Verde Sad, BIT 1950 and Regueira “to refrain from issuing tokens guaranteed by shares of the sports corporation, until the BCU has ruled on the business projected by the parties, known as ” Colon Coin”.
Besides, The BCU once again required the presentation of documentation stating the terms and conditions of the business, a copy of all the documentation to be signed with investors, as well as information on the platform from which the tokens would be sold (detailing its operation )which was already required and which to date has not yet been submitted, says the document of the Superintendence.
