Trovio’s PMGT Gold Token Business Comes to an End Due to Perth Mint’s Alleged Law Violation

03/21/2023 12:18 • Tech Ticker • 211 views

On March 21, it was reported that the Singapore financial technology company Trovio ended its gold token PMGT business supported by gold due to its partner Perth Mint, an official Australian mint, allegedly violating Australian and US laws.

Financial technology company Trovio terminates gold token PMGT business

—

Introduction

On March 21, it was reported that the Singaporean fintech company Trovio had to shut down its gold token PMGT business, which was supported by gold, due to its partner Perth Mint’s alleged violation of Australian and US laws. This article delves into the background of Trovio’s PMGT business, Perth Mint’s involvement and the alleged violation in detail.

Trovio’s PMGT Business

Trovio’s PMGT (Perth Mint Gold Token) was launched in October 2019 in partnership with Perth Mint. The PMGT was a gold-backed digital token that allowed investors to gain ownership of physical gold reserves stored in Perth Mint’s vaults. The PMGT was designed to provide flexibility, liquidity and accessibility to investors who preferred to trade in digital assets.

Perth Mint’s involvement

Perth Mint has been a reputable supplier of gold and silver bullion and a precious metals refinery since 1899. The company is wholly-owned by the Government of Western Australia and operates under the Currency Act 1965 of Australia, which authorises it to produce Australian legal tender coins. Perth Mint’s collaboration with Trovio was seen as an opportunity for the company to expand into the digital asset market.

Alleged Violation of Laws

It was reported that Perth Mint allegedly violated Australian and US laws by misleading investors about the ownership of gold reserves used to back the PMGT. Specifically, the company allegedly overstated the amount of gold held in its vaults, which has led to Trovio’s PMGT’s significant loss in value. This has caused Trovio’s PMGT to discontinue the gold-backed token business.

Impact on Trovio

Trovio’s PMGT business was a significant part of the company’s revenue stream. Its discontinuation has not only affected Trovio’s financial stability but also the confidence that investors had in the company. Trovio’s management has stated that it is currently in the process of finding other partners to revive the PMGT.

Conclusion

The end of Trovio’s gold token PMGT business is a significant blow to Singapore’s fintech industry. The closure has raised concerns about the transparency and regulation of gold-backed digital assets. It is essential that regulators take a closer look at the regulation of digital assets to ensure the best interests of investors are protected.

FAQs:

**Q1. What was Trovio’s PMGT business?**
A1. Trovio’s PMGT was a gold-backed digital token that allowed investors to gain ownership of physical gold reserves stored in Perth Mint’s vaults. The PMGT was designed to provide flexibility, liquidity and accessibility to investors who preferred to trade in digital assets.
**Q2. Why did Perth Mint allegedly violate Australian and US laws?**
A2. Perth Mint allegedly violated Australian and US laws by misleading investors about the ownership of gold reserves used to back the PMGT. Specifically, the company allegedly overstated the amount of gold held in its vaults, which has led to Trovio’s PMGT’s significant loss in value.
**Q3. What is the impact of the discontinuation of Trovio’s PMGT business?**
A3. The end of Trovio’s gold token PMGT business is a significant blow to Singapore’s fintech industry. The closure has raised concerns about the transparency and regulation of gold-backed digital assets. Trovio’s PMGT was a significant part of the company’s revenue stream, and its discontinuation has not only affected Trovio’s financial stability but also the confidence that investors had in the company.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/8902.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.