One of the richest countries in the world, Switzerland, has decided to create guidelines in order for local start-ups to raise capital through Initial Coin Offerings. The measure can be seen as one of the different steps in order to become a cryptocurrency nation.
Switzerland Cryptocurrency Nation
Most of the countries in the world are taking strict measures against initial coin offerings and cryptocurrencies. Some countries even banned ICOs like China or South Korea. But Switzerland is trying another approach towards these new ways of fundraising.
The guidelines divide the Initial Coin Offerings in three categories.
- Payment Initial Coin Offerings
This category is related to the ICO funds that are transferable and can be used as a means of payment. Clearly, the ICO would have to comply with anti money laundering regulations and would not be considered as financial securities.
- Utility Initial Coin Offerings
As the name suggests, these are ICOs that issue tokens that can be used to provide access to a product or service. These would not be considered securities if they serve as utilities.
- Asset ICOs
There are several ICOs that sell equities to investors that will ensure future returns as dividends or regular income. These will be securities and the regulation for financial securities will be applicable.
According to the Minister of Economy, Johann Shcneider-Ammann, the country wants to become a “crypto-nation.” In the country there are several Initial Coin Offerings running, and the European nation is a good option for cryptocurrency miners to diversify their farms all over the world. The cost of the electricity is reduced for mining purposes and in winter the temperatures tend to be low, helping to keep cool the mining farms.
As reported by Financial Times, the Ministry said:
“We think there is huge potential, but the market is not as disciplined as we want. We want the ICO market to prosper but without compromising standards or the integrity of our financial markets.”
With the different measures taken, the government aims to attract more cryptocurrency and blockchain enthusiasts and investors.