Switzerland’s finance watchdog has released fresh guidelines, which show it’s planning to consider some tokens sold during ICOs to be securities.
As follows from a newly-issued press release, the Financial Market Supervisory Authority or FINMA for short, there has been an abrupt soar in the number of ICOs started in Switzerland. It generated numerous inquiries regarding the regulations applying to them.
With the overall situation currently uncertain, the new rules have been published to clarify the status of projects willing to start a token sale project in Switzerland.
Ensuring transparency at this time is crucial considering the dynamic market as well as the high level of demand, as the watchdog told.
FINMA is going to determine whether it’s applicable to regulate tokens on a case-by-case basis, following an example of the US Securities and Exchange Commission in a rule issued last July.
When estimating ICOs, the watchdog told it’s going to concentrate on the economic function, not to mention the purpose of the tokens. It’s crucial to find out whether they’re already transferable or tradable or not.