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New regulations in Switzerland ruin ICO projects

From the first day of the worldwide ICO-mania, Switzerland demonstrated a friendly attitude towards the blockbuster start-ups. The Swiss enthusiastically accepted the idea of ​​crypto currency, unlike other world regulators.

The country has become an attractive location for companies in this sector, thanks to a favorable legislative framework and transparency of business. Financial regulators welcomed such projects as Tezos, Mysterium and Arcblock.

In February 2018, the Swiss Financial Market Supervision Authority (FINMA) published recommendations for the application of the existing legislation on financial markets for the regulation of ICO. The goal was to clarify how to regulate the primary offers of coins.

The CEO of FINMA, Mark Branson, voiced his vision of regulation:

“Our balanced approach to the regulation of Ico Projects will allow them to orientate themselves in the regulatory landscape and launch their projects in such a way that the interests of investors are protected in accordance with the law.”

However, the effect was directly opposite.

Among the risks that were described in the 11-page document, concern was raised about the possibility of money laundering through the crowdsdale. Section 3.7 of the document states:

“The regulation of the fight against money laundering raises a number of requirements, including compliance with the KYC and AML rules for all ICO participants.”

More – for the conduct of the procedure KYC ICO should use the services of a profile Swiss company.That’s where the problems started.

In Switzerland, only a few companies are able to perform such checks. They, in fact, hold a monopoly.The average cost of checking the KYC of one ICO participant in the world ranges from $ 0.6 to $ 2.Switzerland in this matter went further than all – accreditation bodies charge a fee of up to 25 dollars. So it turns out that the average ICO needs to put about 30 thousand dollars, which puts the projects that have already decided to launch the ICO in Switzerland, at a very disadvantageous position.

Since the FINMA guidelines do not have legal force, there is an alternative option – to completely ignore them and not to conduct any verification. This strategy is fraught with risk, but some projects still chose it. In order to invest in such projects it is enough to have an active profile in Facebook or Gmail account.Risky, but some startups are not ready for extra costs.

The post New regulations in Switzerland Ruin Ico Projects appeared first on 9 to 5 Live.



This post first appeared on 9to5live, please read the originial post: here

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New regulations in Switzerland ruin ICO projects

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