How is Switzerland regulating the STO market?

Switzerland, which is known for their superb banking system and strict regulations, have started to exercise control on ICO/STO issuance and crypto fundraising.

The Financial Market Supervisory Authority (FINMA), responsible for the supervision of Swiss-registered STOs and ICOs, published a set of guidelines that every issuer must observe in order to be legally compliant.

The categorization of tokens is made into three distinctive categories: payment tokens (cryptocurrencies), asset tokens (security tokens) and utility tokens. The asset tokens regulations were introduced in order to provide reliable and trustworthy investment information and to minimize the potential risk for buyers.

Security token offerings are obliged to meet FINMA criteria and are characterized as tokens that are issued in vast quantities of equal value. Under the Code of Obligations (CO), keeping a record book of all transferred tokens and their shareholders is fundamental. Thanks to the blockchain technology keeping a record of the aforementioned token holders and transactions allows fast and secure execution of transactions.  

In addition, asset tokens mimic the traditional financial instruments. Hence, the obligation of publishing a Prospectus in accordance with the rules of Swiss Code of Obligations is also needed.

One of the critical element of FINMA`s regulations is the adherence to the anti-money laundering policy and the code of conduct for the STO/ICO projects. All introduced and implemented by the issuer mechanisms for fraud protection are being evaluated and assessed.

The draconian policies for controlling all crypto-related project has ranked Switzerland as one of the “big three” countries regulating the market, along with Malta and Gibraltar. Switzerland is also the birthplace of the Ethereum Foundation (Stiftung Ethereum), indicating the strong presence of Switzerland in the world of crypto.

Blueshare STO is fully compliant with FINMA`s regulations and exercises business practices that are in accordance with the Swiss laws. The Prospectus has been published in accordance with the obligations of issuing public securities. All anti-money laundering requirements are kept to the highest standard.

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