Chinese New Year Ends Bitcoin Price Correction
In summary, the rules fundamentally separate the ICO crowd sales into three noteworthy classifications. These are:
- Payment ICOs
These are the ICO funds that are transferable and can be utilized as a method of payment. Finma commented these ICO would need to agree to the anti money laundering regulations yet they wouldn’t be considered as financial securities.
- Utility ICOs
These are ICO’s that will utilize tokens or funds as a way to give digital access to an item or a service. These wouldn’t be viewed as a security only in the event that they are worked with a reason to serve a utility.
- Asset ICOs
As the name proposes these are the ICO’s which will be sold to investors as values or bonds and will guarantee returns as dividends or regular income. These will fall under the definitions of security and all controls for financial securities will be pertinent.
On Friday, Mark Branson, Finma’s CEO, said its “balanced approach” to ICO projects would permit “legitimate innovators to navigate the regulatory landscape and so launch their projects in a way consistent with our laws protecting investors and the integrity of the financial system.”
While government around the globe are caught up with ordering strict and hard laws to control rising digital currency market, Switzerland government is taking an alternate way altogether. Prior this year China, South Korea, and India have effectively cleared their unwillingness to embrace digital currency exchanging and bitcoin payments.
Johann Schneider-Ammann, economics minister, a month ago said Switzerland needs “to be the crypto nation”. The truth will surface eventually what will be the implications of this step by Switzerland, yet for the time being, this is an awesome news for digital currency market.