Unclear Regulatory Framework for Security Tokens in Switzerland

We are extending the reservation phase and moving the start of the ICO for SwissRealCoin 2–3 months back. In the meantime we’re activating Plan B after the Swiss regulator FINMA missed the opportunity to provide clear guidance on the proper structuring of innovative security tokens.

SwissRealCoin (SRC) has applied for a letter of no action from FINMA in February 2018. The aim was to launch the SRC ICO in May 2018 in compliance with the newly issued FINMA ICO guidelines. Despite Switzerland’s pole position as ‘Crypto Nation’, the regulatory framework for security token projects remains unclear. After missing clear guidance from FINMA on how to structure innovative tokens in a fully compliant way, we have decided with our lawyers to activate Plan B, which will allow to launch the project in full compliance with the local regulatory framework. Preparing this new set-up, however, will delay the ICO.

Following a few thoughts from Brigitte Luginbühl, CEO of SwissRealCoin:

“We are surprised and disappointed by the missing guidance from FINMA how to properly structure an innovative security token, which forced us to postpone our ICO start by several months. Compliance and integrity are our top priorities, which is why we’re not cutting on any efforts and launching our project as a security token with the highest compliance standards in order to set the new industry standard — aiming to bring security, trust and real value into the crypto space.

We’re clearly a first-mover and unfortunately the regulatory framework isn’t ready yet to accommodate the new asset class we’re creating. We are now activating our Plan B to make sure we can launch the SRC ICO in full compliance with regulatory frameworks, hopefully paving the way for future security token projects in Crypto Nation Switzerland.”

The SwissRealCoin team is working hard on the Plan B and is available to answer any questions from the community (join our Telegram Chat). We will share further details regarding Plan B in the near future.

FAQ

1. What’s happening to the money I already transferred to SRC?
   The money we have already received from investors is safely stored with our Escrow agent / bank account
2. Is my money safe?
   The money we have already received from investors is safely stored with our Escrow agent / bank account.
3. What happens to my money if you can’t do the ICO?
   The money will be transferred back to you.
4. When will I receive my tokens?
   We will transfer the tokens after the ICO has been successfully closed. Once the ICO ends, it will take a few days for the tokens to be generated. We will inform all investors about the necessary steps in due time.
5. What solutions are you working on if you don’t get green light from finma? Compliance as well as integrity towards our investors is our top priority. We are currently exploring two reasonable and safe options and will inform the community very soon.
6. Why are you accepting money if you don’t even know if you can do the ICO?
   The investors have the early advantage to secure themselves an early investment bonus. The money transferred now, is safely stored with our escrow agent.
7. Are you considering moving SRC to another jurisdiction?
   We are currently setting up a global licensing network for other *RealCoins — we have a lot of license requests for other jurisidicions — already planning German Real Coin.
   But SwissRealCoin is a Swiss project with a Swiss team and Swiss assets behind it. So far, Switzerland has been very welcoming for blockchain projects. With SwissRealCoin we are launching a new asset class — crypto real estate. We strongly believe that security tokens will be a big part of the future of crypto and we want to work with local authorities to find a way to launch this asset class in compliance with the local regulatory framework.
8. What about the Bonus?
   There are no changes to the bonus system. Since the reservation phase has been extended, the bonus system is still active.