Having one of the most suitable legal frameworks for cryptocurrency investments, Switzerland can be an attractive location for launching initial coin offering (ICOs). ICOs are employed for starting a hedge fund or an investment company that deals with the issuance of new cryptocurrencies. It is generally used as a means of raising capital and it is considered to be a modern alternative to initial public offering (IPO). In Switzerland, raising capital through ICOs can be completed by using government regulated currencies as well as virtual currencies, such as Bitcoin or Ethereum.
 

Although ICOs are not specifically regulated in Switzerland, the official financial institution of the country, the Swiss Financial Market Supervisory Authority (FINMA) issued in September 2017 a guidance regarding the legal framework applicable to initial coin offerings. 

The following video offers a short presentation on the Swiss ICOs:

 

Businessmen who are interested in how to start a fund in Switzerland through ICOs must know that FINMA addresses each case in particular and decides whether it falls under a specific rule of law. Depending on the nature of the investment, certain ICO models can be regulated by the following rules of law:
 

• Swiss Anti-Money Laundering Act;

• Banking Regulations;

• Acts and Regulations related to Collective Investment Schemes.
 

Switzerland recognizes the following types of tokens, used for ICOs: 
 

• payment tokens or cryptocurrencies;

• utility tokens;

• asset tokens. 
 

These tokens can be further divided into two main categories, as follows: 
 

• intrinsic tokens;

• asset backed tokens. 
 

In Switzerland, instrinsic tokens, such as Bitcoin, are seen just as regular currency, which means that the exchange of any currency into a token used for ICO will be regulated under the Swiss Anti-Money Laundering Act. 
 

More importantly, any person investing in ICOs a sum above CHF 5,000 will fall under the „Know Your Client” policies. 
 

In the first three quarters of 2017, Switzerland achieved a record value on the investments performed through ICOs, as it attracted a quarter of all the ICOs concluded at a global level (accounting for approximately $ 3 billion). 
 

Foreign businessmen who want to receive assistance for launching ICOs in this country are invited to contact our team of affiliates in Switzerland for consultancy services.