'You'd be better going off to the bookies than investing in this': Bra tycoon Baroness Mone's plans for new 'British Bitcoin' virtual currency venture are slammed

  • Lingerie tycoon, 46, is launching virtual currency called Equi later this month
  • Peer and boyfriend Doug Barrowman are asking for minimum investment of £72k
  • But experts warn cryptocurrency could be worthless and make no profit 
  • It is also not being regulated by the Financial Conduct Authority or sold in USA 

Bra tycoon Baroness Mone has come under fire for her new virtual currency venture she claims will be the 'British Bitcoin'.

The Scottish businesswoman, 46, and her boyfriend Doug Barrowman, 53, is officially launching the 'Equi' coin on March 15. A pre-sale on Thursday has already asked supporters for a minimum investment of £72,000 ($100,000).

But the business partner couple have been slammed by experts after it emerged the currency will not be regulated and could see backers lose everything.

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Glasweigan-born Michelle Mone (pictured) became one of Scotland's most successful entrepreneurs in history after founding Ultimo lingerie brand, which developed the silicon-padded bra

Glasweigan-born Michelle Mone (pictured) became one of Scotland's most successful entrepreneurs in history after founding Ultimo lingerie brand, which developed the silicon-padded bra

According to The Sunday Times, the scheme is not signed up to the Financial Conduct Authority, who are now being urged to step in.

The couple are not selling the new product to the US either as their business model could breach American restrictions, reports the newspaper.

China has banned any new virtual currencies and countries like Russia, India and Bolivia also have strict laws, meaning they won't be able to sign up. 

John Mann, Labour member of the Commons' Treasury select committee and MP for Bassetlaw has slammed Baroness Mone's plans.

He said: 'You would be better going off to the bookies than investing in this scheme.'

Theresa Burton, chief executive of FCA-regulated, peer-to-peer lenders Trillion Fund, is also skeptical.

But the Scottish businesswoman and her partner (pictured with her) have been slammed by experts after it emerged the currency will not be regulated and could see backers lose everything
Pictured: Lingerie empress Baroness Michelle Mone, 46

The Scottish businesswoman and her partner (pictured left) have been slammed by experts after it emerged the virtual currency they are launching will not be regulated and could see backers lose everything

She told The Times: 'They may have found some loophole that allows this, but it should be a regulated activity. The government and the FCA have to wake up and look at this.' 

Glasweigan-born Michelle Mone became one of Scotland's most successful entrepreneurs in history after founding Ultimo lingerie brand, which developed the silicon-padded bra.

She was made a Conservative Peer in the House of Lords in 2015 by former Prime Minister David Cameron and now advises on a range of business topics.

Mr Barrowman is the founder and CEO of a private equity company called Aston Venture and also founder and chairman of the Knox Group - a financial planning service.

He is estimated to be worth billions and has spoken regularly about the world of cyrpto-currencies. 

Together the couple founded Equi Capital in the hope that backers will buy coins, which they can sell on digital currency exchanges and make money to invest in the business's capital projects.

In a promotional video Mone says: 'As an entrepreneur I fully understand what it takes to build a successful company.' 

Coins are 36p each, but the couple hope it will make £58,000 ($80,000). There will be 250 million tokens available when the project launches later this month. 

John Mann, Labour member of the Commons' Treasury select committee and MP for Bassetlaw has slammed Baroness Mone's plans. She is pictured in the House of Lords 

John Mann, Labour member of the Commons' Treasury select committee and MP for Bassetlaw has slammed Baroness Mone's plans. She is pictured in the House of Lords 

Experts fear Equi coins could turn out to be worthless, meaning they won't make enough money to invest in capital projects or return any profit.  

Equi insists what they are doing does not require regulation and is 'completely transparent'. 

A spokesman told the newspaper: 'We have always taken the view, and our legal advice has supported that view, that [the initial coin offering] did not amount to a financial promotion requiring approval by an authorised person.' 

The FCA said it could not comment on the particular case but warned against unregulated, high-risk and speculative investments.   

Last month Baroness Mone was forced to defend her record in the House of Lords.

Stewart McDonald, SNP MP for Glasgow South, tore into her on Twitter for not asking any questions during her two and a half years in the Chamber.

But Baroness Mone hit back branding the politician a 'moron' and pointing out she has voted 78 times.

A spokesperson for Baroness Mone said: 

'Equi has subjected its plans to the scrutiny of English leading counsel expert in UK financial regulation. The advice from leading counsel has been positive in supporting Equi’s views that its ICO falls outside the scope of UK regulation. Equi has from the outset planned that its investment platform, when constructed, will work as a regulated business under FCA scrutiny. Equi is, therefore, acting within the law and scope of financial regulation in the UK.

'References to US financial regulation is irrelevant. The US is a different jurisdiction. The SEC has not made up its mind how to approach regulation of crypto currency. Baroness Mone is on record as agreeing Mark Carney’s recent statement that crypto currency is in need of regulation.

'So far as Equi is aware, no “expert” has criticised the ICO.

'The Equi White Paper, which is available on the Equi website, contains a full Risk Warning section as well as numerous FAQs which point to the risks inherent in every ICO and all crypto currency and includes a full extract from the FCA website pointing to the risks of crypto.

'Equi has gone to great lengths to ensure that potential purchasers of Equi make any purchase with full knowledge of the risks involved. They must fulfil stringent investment criteria which are designed to avoid ordinary members of the public losing money which they cannot afford to lose.'

 

Bra tycoon Baroness Mone (pictured) is launching a virtual currency called 'Equi' with her boyfriend Doug Barrowman

Bra tycoon Baroness Mone (pictured) is launching a virtual currency called 'Equi' with her boyfriend Doug Barrowman

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