The Swiss regulator faces a glut digital currency providers seeking funds by issuing tokens. How hard will Finma scrutinize the glut of initial coin offerings being run out of Switzerland?
«Those looking to make money illegally will be stopped,» said Mark Branson, head of Switzerland's financial regulator, Finma told Swiss daily «Le Temps» (in French, behind paywall). The body has already taken one allegedly fraudulent crypto provider out of circulation.
The alpine nation has advanced as a cryptocurrencies, working hard to attract players from the industry. Tax-friendly and lightly-regulated Swiss foundation law to protect assets is another reason, as finews.com has previously reported.
The comments from British-born Branson represent the first sign of how Finma plans to cope with the glut of offerings that Switzerland has attracted.
ICO Licenses?
He said it is too early for Finma to discern how many Swiss-based coin schemes are fraudulent, but that Finma would closely probe those initial coin offerings, or ICOs, deemed potentially problematic.
With the exception of Bitcoin Suisse, most cryptocurrency providers in Switzerland largely escape financial regulation. Branson, a former UBS banker, said not all providers will require a Finma license, but some will be monitored for anti-money laundering measures or as investment schemes, funds, banks, or securities.
