Initial Coin Offering in Switzerland

Initial Coin Offerings, shortly known as ICOs are the latest trend on the global stock market, however the most successful ones were issued in Switzerland. The main reason of this success is Switzerland’s reputation as a financial center on one hand, and the creation of the Zug Crypto Valley on the other hand. Zug Crypto Valley is one of the most popular destination for startups issuing ICOs.

Even if at the moment, the Swiss Financial Market Supervisory Authority (FINMA) has not finished yet releasing a legislation which defines the issuance of ICOs, however through the Crypto Valley Association in Zug it has issued a Code of Conduct related to ICOs.

Our Swiss company formation consultants can offer information on initial coin offering regulations in this country.

What is an ICO?

In Switzerland, initial coin offerings – ICOs – are also known as Token Generating Events – TGEs – and can be defined as fund raising methods through the issuance of virtual money which are meant to become new cryptocurrencies. It should be noted that ICOs have a limited character, meaning they can be issued for a specific amount of time.

The following video offers a short presentation on the Swiss ICOs:

ICOs are more employed by Swiss startup companies seeking to raise money in a fast and legal manner. Our company formation agents in Switzerland can assist foreign investors interested in opening startups here.

How to set up an ICO/TGE in Switzerland

The first step for the issuance of an ICO in Switzerland is to register a company or a foundation with the local authorities. Following that, an assessment of the virtual coin being listed on the Stock Exchange is required, as certain provisions related to collective investment schemes may apply.

A particularity of Swiss ICOs is that the issuance of virtual tokens will bring monetary rewards of the investors, unlike traditional offerings which imply other types of securities. Because of this, filing a prospectus with FINMA could be required, however it must be kept in mind that each case is treated singularly.

Why set up an initial coin offering in Switzerland?

Switzerland is a very attractive country for foreign investors because of the overall economic and political stability it offers. It is also an appealing destination for professional investors because of the regulations it offers upon the establishment of investment funds, regulations which apply when creating ICOs in Switzerland.

An important aspect which is should be considered when choosing to create an ICO in Switzerland is that this country is among the first in the world to have a dedicated canton to the creation of cryptocurrencies: Zug Crypto Valley. Zug is one of the cantons with the lowest tax rates in Switzerland, therefore it will ensure a profitable environment for ICOs from a taxation point of view.

For more reasons or assistance in setting up an initial coin offering in Switzerland, please contact our company registration experts.