The Swiss regulator intends to consider some tokens as securities
The Swiss supervisory authority in the financial sphere has published new rules according to which it plans to consider some tokens sold at the time of primary placement as securities.
In the press release published today the Body of supervision of the financial market (FINMA) has announced the sharp increase in the number of ICO started in Switzerland that has led to the whole flow of requirements to enter norms, applicable for them.
Though the situation remains so far “not until the end of clear”, new directives for the explanation of the status of the projects wishing to start the sale of a token in Switzerland are already published. “At this stage creation of transparency is important, considering the dynamic market and high level of demand” — authorities have said.
It is remarkable that FINMA will define the applicability of the regulating norms for cryptocurrency tokens depending on each case, taking a similar position with the American Securities and Exchange Commission which has published the guidelines in July of last year.
At assessment of ICO FINMA will concentrate on “economic function and mission of tokens”, considering at classification, first of all, “main objectives of tokens and an opportunity to transfer or sell them”.
The agency has divided tokens into three categories, acknowledging also the possibility of the existence of hybrids, and has made regulatory norms for each of them. Three categories — “payment tokens”, “internal tokens of protocols” and “tokens assets”. Tokens of the last group belong to the category of securities.
“FINMA regards tokens assets as securities that means that requirements of the law on trade in securities and also requirements of the civil law of Liability law of Switzerland are applied to such tokens” — the representative of the department has said.
Recognizing “the innovative potential of blockchain technology in the financial market and beyond his limits”, the president of FINMA Mark Branson has said in the press release that the ICO projects organized “according to applicable rules won’t be able to bypass the current legislation”.
For the first time, the Swiss supervisory authorities have announced studying of implementation by ICO drafts of laws on banking services and securities in September 2017. It was said in the first statement about “a research of some ICO projects for identification of cases of violation of the current legislation”.