Regulation of ICOs under the law of supervision

The Federal Supervisory Authority on Financial Markets (FINMA) has decided to focus on the method of raising founds from the public for business purpose using by cryptocurrencies, due to the considerable increase in ICOs (Initial Coin Offerings) in Switzerland.

So, FINMA issued on September 29, Circular no. 04/2017 in which submits Blockchain technology to the supervisory law, due to underlying, the specific characteristics of the ICO and the way in which the public fundraising operation is structured.

However, it is not possible for FINMA to carry out an conclusive assessments of the supervisory law owing to the wide variety in structure of the ICO models and given the uncertainty of a specific regulatory framework. Depending on the specific case, the rules of anti-money laundering, banking law, securities trading and collective investment may be considered applicable.

FINMA, in the aforementioned document, does not carry out legal assessments of ICOs beyond the area of financial markets, exhorting companies and individuals who intend to use cryptocurrencies have to ensure that their project comply with the requirements set out with the obligations of the current applicable laws.

The office is available to provide you with any information about using cryptocurrencies fot your investments. Send an email to: g.cugini@legaltaxteam.com