Tuesday, February 20, 2018

The land of chocolate and banking giving an open arms welcome to cryptocurrencies

On Feb. 18, the Swiss Financial Market Supervisory Authority (FINMA) announced they are planning to encourage crypto and other digital currencies inside their borders, while also providing guidance on ICO issuance.

Wanting to ensure criminal activities such as money laundering are limited through the use of cryptocurrencies, FINMA is in the process of establishing basic guidelines for the establishment of Initial Coin Offerings (ICO's), while at the same time allowing the already burgeoning crypto market to flourish.

Graphic courtesy of Coin Telegraph
While financial regulators across the world are cracking down on bitcoin, Swiss Financial Market Supervisory Authority (FINMA) has decided to encourage digital currencies by issuing guidelines on initial coin offerings (ICOs). 
According to the regulator, Switzerland has recently seen a sharp growth in the number of upcoming ICOs planned to be launched in the country, as well as numerous enquiries about cryptocurrency regulation. In an attempt to encourage the ICO market and blockchain technology, FINMA has clarified how standards around anti-money laundering and securities regulations could be applied to virtual currencies. 
“The application of blockchain technology has innovative potential within and far beyond the financial markets. However, blockchain-based projects conducted analogously to regulated activities cannot simply circumvent the tried and tested regulatory framework,” FINMA chief executive Mark Branson said. 
“Our balanced approach to handling ICO projects and enquiries allows 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,” the CEO highlighted. – Russia Today
The cryptocurrency market is already 1400 strong, and well on its way to a market cap of over $1 trillion.  And the makeup of cryptocurrencies range from speculative investable securities, mediums of exchanges in commerce, resource backed ones with gold, oil, and diamonds, and hundreds of others tied to specific industries.


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