Federal Bank's planned investment in MaiCoin's offshore holding company denied by FSC

Taipei, May 11 (CNA) Federal Bank announced today that its previously planned investment in Modernity Financial Holdings, Ltd. (a Cayman Islands-registered offshore holding company of virtual asset operator MaiCoin) will not proceed because the Financial Supervisory Commission (FSC) deemed it not a financial-related business.

Federal Bank issued a material information statement today explaining that the board of directors approved the acquisition of shares in Modernity Financial Holdings, Ltd. on August 25 last year. The investment was subject to approval by the FSC before it could be carried out.

Federal Bank had originally planned to acquire 5.356 million shares for a total of US$27.817 million (approximately NT$850 million), representing a 9.67% stake. Its subsidiary, Federal Venture Capital, was also to transfer all its shares in Modernity Financial Holdings, Ltd. to Federal Bank.

However, the FSC issued a letter interpreting that Modernity Financial Holdings, Ltd. is not a financial-related business. Consequently, Federal Bank stated in its material information announcement that the investment would not be executed, and the change would not have a significant impact on the company's financial operations. (Editor: Pan Yi-Ching) 1150511

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