How To Go Crypto in Switzerland: All Regulations for Blockchainers
RegulationBit News Today2 min read
Switzerland has emerged as a global hub for blockchain and cryptocurrency innovation, attracting developers and investors with its business-friendly regulations and digital expertise. This climate has fostered the development of a prominent blockchain and distributed ledger network known as "crypto valley" in the Zug-Zurich region. At present, Switzerland does not possess regulations dedicated specifically to virtual currencies or ICOs.
In guidelines published on 16 February 2018, the Swiss Financial Market Supervisory Authority (FINMA) detailed how financial market laws will be applied to enquiries submitted by ICO organisers. These guidelines, published on February 16, 2018 by FINMA, set forth the information FINMA requires from entities or persons intending to market and issue tokens in or from Switzerland.
When evaluating ICOs, FINMA will prioritize the tokens' economic purpose and function over their formal structure. FINMA's categorization system includes:
Payment tokens: Intended to function primarily as a means of payment. Compliance with anti-money laundering regulations is required if the token can already be transferred. Utility tokens provide digital access rights to a service or application. Tokens of this type will be classified as securities if they serve entirely or in part as an economic investment. Asset tokens are treated as securities by FINMA if they are standardized uncertificated securities suitable for mass standardized trading. Treated as securities, subject to securities law and Swiss Code of Obligations.
FINMA's Assessment Principles
The guidelines set out clear requirements for issuers to comply with anti-money laundering (AML) regulations, prospectus requirements, and securities dealer licensing based on the categorization of the tokens.
The guidelines provide a clear framework for organizations to assess their compliance obligations under existing financial market laws.
Under anti-money laundering legislation, organisers can face duties such as submitting directly to FINMA supervision or affiliating with an approved self-regulatory body. Anti-money laundering requirements also oblige organisers to confirm the identities of beneficial owners.
For asset-issuing firms, a securities dealer license and prospectus may also be required. However, these licensing requirements do not apply if the company does not have a physical presence in Switzerland.
