Initial Coin Offering in Switzerland
As the cryptocurrency boom continues to take hold of the world economy and stock markets, the popularity of an ICO or Initial Coin Offering has arisen. Switzerland is currently home to some of the worlds leading cryptocurrencies as well as ICOs, this is mainly thanks to the world’s outlook on Switzerland as an international finance hub and tax haven for businesses.
On top of this, the canton of Zug has a locality touted as the Crypto Valley where some of the worlds most profitable ICOs operate and where new ones establish themselves.
The fact that the Swiss Financial Market Supervisory Authority (FINMA) has not yet developed a legislation or regulation for ICOs hasn’t hindered the development and growth of the industry in Zug or the rest of Switzerland. There is, however, a new Code of Conduct which has been set up in place of FINMA’s coming soon regulation.
For more information on the booming ICO market and how to develop an ICO in Switzerland please feel free to contact our consultants.
What is an ICO?
An ICO or Initial Coin Offering can be explained as a capital growing or fundraising measure in which, instead of traditional funds, digital currency is issued, normally as a token or coin. These coins are destined to be merged within a new cryptocurrency, giving their recipients an early leg up in the new currency. However, these ICOs are only issued for a short timeframe.
As ICOs are often seen as highly valuable investments, are exceedingly popular and in-demand assets, they are often a means for businesses to raise capital in a rapid and legally approved way.
How to set up an ICO/TGE in Switzerland
Developing a Swiss ICO will first require registration and approval from government bodies. After approval and registration are complete, there is also a required assessment and agreement for businesses who are listing their coins on the Swiss Stock Exchange. This is mainly a result of provisions and investment regulations.
Normally, due to ICOs offering income or other funds as a reward, there will need to be a FINMA certificate requested. Although, as the market is fairly new, every single case is presented and approved on its own terms. Investors should understand that within the ICO space, the rewards offered are almost entirely money-based rather than security-based.
Why set up an initial coin offering in Switzerland?
A universal fact about Switzerland is its heavy focus on creating a stable and growth-focused business environment for its foreign investors and business developers. With this in mind, the country creates a number of regulations specifically for the development of investment firms and other companies. All of these regulations, taxation reductions and growth assistance laws also greatly benefit ICOs in Switzerland.
An essential piece of information to know about Switzerland is that it features an actual state or canton which is entirely focused on the development and growth of ICO and cryptocurrency companies. Known as the Zug Crypto Valley, the canton offers a plethora of tax benefits and other laws promoting and boosting the growth of ICOs.
If you require more assistance in understanding Swiss ICO laws, regulations or would like to know more about Switzerland’s cryptocurrency environment, don’t hesitate to reach out to one of our business consultants.