In more good news for crypto enthusiasts, Switzerland’s market regulator FINMA (Financial Market Supervisory Authority) published a set of guidelines for Initial Coin Offerings (ICOs) in a bid to mainstream and regulate the process, while protecting investor interests. The guidelines class ICOs into three categories, based on which they may or may not have to comply with Anti Money Laundering (AML) laws and regulations for financial securities. ICOs may belong to more than one category.
- The first category includes tokens issued as virtual currency and is subject to Anti Money Laundering (AML) laws.
- The second category comprises those tokens that enable access to specific digital services and are not regulated as securities.
- The third category is constituted by tokens that generate revenue for owners or stand for shares in an asset that could possibly yield dividends. These tokens are regulated as securities.
This move is expected to make Switzerland more attractive as an investment destination for entrepreneurs looking to raise money and start businesses.
It is noteworthy that while some nations like China and South Korea have banned ICOs outright, some others like Switzerland are taking the regulatory approach. Spain is reportedly expected to bring in similar regulations and tax incentives in the near future, to lure in businesses.
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