Switzerland has long been a global centre for wealth management industry. And now, it has decided to create guidelines in order for local start-ups to raise capital using ICOs. This measure can be viewed as one of the steps in order to become a cryptocurrency friendly nation.
While most of the countries are taking strict actions opposing cryptocurrencies, Switzerland is trying a different approach towards it. Some countries like South Korea and China even went on to ban cryptocurrency trading. Also, many economic big guns are openly speaking out against decentralized trading. So, Switzerland’s decision to accept and regulate cryptocurrency is definitely like a breath of fresh air. According to the Minister of Economy, Johann Schneider-Ammann, the country wants to become a “crypto-nation.” 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.
Guidelines for Regulation
According to the ministry, the guideline categorizes ICOs into three types:
- Payment ICOs
This type consists of ICOs that are transferable. People can use these ICOs as a means of payment. So, these ICOs will obviously have to comply with anti-money laundering regulations. Also, the government will not consider these ICOs as financial securities.
- Utility ICOs
As the name suggests, these ICOs will provide access to a product or service. Again, the government will not consider these ICOs as financial securities if they serve utilities.
- Asset ICOs
These ICOs sell equities to investors that will ensure future returns as dividends or regular income. These will be securities and the regulation of financial securities will be applicable.
According to the Minister of Economy, 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. Furthermore, the cost of the electricity is reduced for mining purposes. Also, in winter the temperatures tend to be low, helping to keep cool the mining farms.