Switzerland: The new ginormous hub for ICO services and Blockchain Development
Swiss chocolates, Swiss Watches, Swiss Bank and now Switzerland is leaping ahead in becoming the largest crypto-hub ever in the world. All thanks To Ethereum which made Switzerland grow into a gianormous leader in Blockchains and crypto World.
ICOs have grabbed attention worldwide and have been trending over internet over a couple of years now. 2018 is considered the yet to be best year for the crypto-market and Blockchains. The world has found a new way of crowd funding or fund raising activity using cryptocurrencies. The participants invest their Fiat money to get the ICO coins or tokens which marks his share in that project.
Crypto Valley in Switzerland
Swiss market has been growing exponentially since Ethereum found its base over there. The Swiss authorities are all set to make Switzerland to become a super power in the crypto Industry. Zug, is already known as Crypto Valley and is also becoming the virtual currency hub. The Financial Market Supervisory Authority (FINMA) introduced some new regulations for e-currency exchanges and managing ICOs.
Johann Schneider, head, Swiss Economic Affairs expressed that the booming ICO market in Switzerland has boosted the European trade to new levels. The head of Crypto Valley Association, Oliver Bussmann confirmed that crypto-World has pavered a new way to small banks which are all set to take leading positions in future by adopting this technology.
FINMA outlines a regulatory approach to ICOs
There is no doubt that the number of ICO in Switzerland is sky rocketing and there was an urgent need for a regulatory authority to intervene. On February 16, FINMA came up with certain guidelines on ICO, as per which many of the Swiss ICOs will be taken as securities rather than utilities with some exceptions. For the ICO projects which are already up and live or regarding the e-currencies functioning as mode of payment (exchange), will not come under securities but would be subject to follow AML regulations.
As per Mark Branson, CEO, FINMA said that the regulations are created to have a balanced approach towards the ICOs allowing only legitimate parties to launch their project seamlessly in Switzerland. As per new Guidelines there will be two types of tokens:
1. Utility Tokens: All those tokens which intend to provide any kind of digital access to any service or application.
2. Asset Tokens/ security Tokens: All those tokens which refer to any kind of physical assets or tradable things.
The guidelines by FINMA are introduced to boost the new ICO startups in a well defined manner following a channelized approach in Switzerland. The startups now have to prove their legitimacy and profitability by identifying their scope towards the investors. These guidelines will surely imbibe the desired transparency and reliability in the system and will eliminate the scammers and fraud ICOs from the ecosystem. The crypto analysts and market experts believe that these regulations are 100% reasonable and genuine which will surely attract new businesses making Switzerland the new Crypto capital.