Anti-Money Laundering & Countering Financing Terrorisme and Banking ICO Legislation in Switzerland. Kindle Edition
This book gives a full overview of all the legal aspects for a startup intending to conduct an Initial Coin Offering / Token Generation event in Switzerland. It begins with an explanation of the approach adopted by FINMA (Swiss regulator) distinguishing tokens by their functions. It also describes different types of tokens. The differentiation between different tokens will help you to properly configure your tokens (and describe their functions in white paper). This is very important to avoid the application of unwanted legal restrictions and conditions attached to the issuance of the security token.
In the second part of this book, you will find a description of the legislation applicable to payment and utility tokens, as well as an overview of other Swiss laws potentially applicable to your work. The chapter describes various options that allow you to set up your activity (token issuance, cryptocurrency exchange operations and others) with few conditions and restrictions possible and in the same time in a legally compliant way. It also discusses the application criteria (with its exceptions) of the major Swiss financial laws, that are relevant to a crypto-project. Those financial laws, once applied to your project can restrict your activity or submit it to supplementary unwilling conditions. By using application exceptions, and pieces of advice discussed in this book on setting up your business you will be able to configure your projects easily (i.e. the number of licenses that you will need to get and the conditions to fill in) and at the same time in a compliant way.
The third part of the book describes licensing requirements that you need to meet and how to apply for them. If apply properly advices form the second part of the book, you will only require a single license from a Swiss Self-Regulated Organization (SRO) for your project. The main purpose of this authorization is to ensure that you have an appropriate structure and knowledge allowing you to apply AML&CTF Swiss legislation.
In the fourth part you will find a draft of an internal AML directive that any company willing to get a SRO authorization needs to have. It is the most time-consuming part of the SRO licensing procedure. The internal AML directive represented in this book is fully adjusted for an ICO or cryptocurrency exchange operations (including cryptocurrency exchange platforms). But it should be adapted for each specific startup.
In the fifth part you will find an extensive description on the KYC (know your client) process and advice on utilizing the proper due diligence approach compliant to the Swiss legislation.
BONUS: AML KYC internal procedures and forms compliant to the Swiss AML legislation.