The Swiss financial regulatory board, Financial Market Supervisory Authority (FINMA), has increased its investigations into ICOs in Switzerland, according to a press release yesterday. The move comes after a substantial uptick in the number of ICOs based in the country, according to the document.
The Swiss financial board has also indicated that many of the ICOs that are currently active have already likely breached existing law that regulates financial instruments within the country. These include money laundering and terrorist measures, securities trading provisions, investment scheme laws, and banking laws.
As investigations continue, the Swiss regulatory body indicated that some action may be taken against those who have already violated policy. The document stated:
“FINMA is currently looking into a number of different cases. Moreover, whenever FINMA is notified about ICO procedures that breach regulatory law or which seek to circumvent financial market law it initiates enforcement proceedings.”
Still supportive
The document did, however, indicate that the Swiss government has embraced the industry-changing power of Blockchain technology, and would continue to support new innovations within the space. The document states:
“FINMA recognises the innovative potential of such technology and has been supporting efforts in developing and implementing blockchain solutions in the Swiss finance industry for several years.”
As other countries like China and South Korea continue to move toward stringent ICO policies, governments with more relaxed and innovation-friendly regulation will likely draw large numbers of new ICOs.