ZURICH (Reuters) - Switzerland’s financial supervisor on Friday said it would regulate some digital currency fundraisers, known as initial coin offerings (ICOs), either under anti-money laundering laws or as securities.
Fundraisers launching digital currencies intended to function as a means of payment, and which could already be transferred, would be subject to anti-money laundering regulations but would not be treated as securities, the Financial Market Supervisory Authority (FINMA) said.
Fundraisers launching digital tokens intended to provide access to an application or service would be treated as securities if they function as an economic investment.
And fundraisers launching digital tokens that represent assets — like a share in a company, earnings or underlying physical goods — would be regarded as securities.
Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields