With global regulatory authorities moving to regulate initial coin offering (ICO) related activities, the Crypto Valley Association (CVA) has urged Swiss authorities to “recognise and support these tokens and token launches.”
The CVA noted that Switzerland is a popular destination for token launches with four of the five biggest launches based in the country, raising bitcoin and ether worth a combined total of over US $600 million. At the same time, it emphasized that token launches are unregulated, investors are often unaware of the true nature of their investment, and the associated risks are often not clearly stated. Moreover, the legal and tax status of these tokens also remain unclear. It also said that the hype and success stories surrounding these ICO drives make them a target for hackers.
However, the CVA expressed its optimism about the potential of this method of raising funds. It said:
“The CVA is fully convinced that, in the long-term, token launches are a sound, innovative approach to raising investment capital. Switzerland should support this trend by being the first country to recognise and support these tokens and token launches. This will foster an environment that encourages blockchain and related companies to establish themselves here, bringing jobs to the region and providing investors with the clarity, confidence and security they need.”
The association called for a clear, comprehensive yet flexible regulation that clarifies the legal status of token launches, tokens, and the related investments. It further added:
“We also believe the industry would benefit from a clear code of conduct surrounding token launches, to help companies fulfil their legal and moral obligations and give investors a clear understanding of the risks involved.
“To this end, the CVA and its members have begun a project to draft such a code of with the help of a multi-disciplinary team from the fields of law, tax, accounting, cybersecurity, communications, and more.”
Global regulatory authorities including the Securities and Exchange Commission (SEC), the Bank of Russia, the Securities Commission Malaysia (SC), among others, have issued warning to investors against ICOs. China, on the other hand, called for an immediate ban of all ICO activities.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
