Conducting an Initial Coin Offering (ICO) of a Security Token

Lately we have received many questions about conducting an initial coin offering (ICO) of a security token, so we thought we would address it. In Switzerland, conducting a security token offering is subject to financial market regulations and, more specifically, a prospectus. The Swiss Financial Market Supervisory Authority (FINMA) has issued guidelines on ICOs, stating that ICOs may qualify as securities offerings and therefore be subject to federal laws and regulations on securities.

To conduct an ICO of a security token in Switzerland, you would need to:

  1. Conduct a proper due diligence to ensure that the security token offering complies with all applicable laws and regulations.
  2. Obtain any necessary licenses or approvals from FINMA, including but not limited to approval of the prospectus and a FINMA no action letter.
  3. Follow the regulations for advertising and offering securities, which include providing potential investors with sufficient information about the ICO and the underlying assets.
  4. Ensure the security of investor funds and personal information.

It is important to note that the regulatory landscape for ICOs is constantly evolving, and it is recommended to seek professional legal and financial advice before launching an ICO in Switzerland.

We can assist with this process.

Contact us for more information.