Difference between revisions of "FINMA"

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{{Infobox_Company  <!-- Feel free to remove comments like this when you add real info -->
 
{{Infobox_Company  <!-- Feel free to remove comments like this when you add real info -->
 
| company_name = Swiss Financial Market Supervisory Authority (FINMA)
 
| company_name = Swiss Financial Market Supervisory Authority (FINMA)
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== Overview ==
 
== Overview ==
  
FINMA was founded in 2009 by three Swiss institutions: the Swiss Federal Banking Commission (SFBC), the Federal Office of Private Insurance (FOPI), and the Anti-Money Laundering Control Authority (AMLCO). The establishment of FINMA was an attempt by Swiss regulators to consolidate the responsibility of supervising the financial markets to a single entity.<ref>{{cite web|url=https://www.finma.ch/en/finma/organisation/|name=How FINMA is organized|org=FINMA}}</ref>
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FINMA was founded in 2009 by three Swiss institutions: the Swiss Federal Banking Commission (SFBC), the Federal Office of Private Insurance (FOPI), and the Anti-Money Laundering Control Authority (AMLCO). The establishment of FINMA was an attempt to consolidate the responsibility of supervising the Swiss financial markets into a single entity.<ref>{{cite web|url=https://www.finma.ch/en/finma/organisation/|name=How FINMA is organized|org=FINMA}}</ref>
  
 
FINMA is responsible for monitoring banks, insurance companies, stock exchanges, and other market participants in Switzerland, as well as enforcing Swiss financial markets laws.<ref>{{cite web|url=https://www.finma.ch/en/finma-public/finma-kurz-erkl%C3%A4rt/|name=How FINMA helps investors and individuals|org=FINMA}}</ref>
 
FINMA is responsible for monitoring banks, insurance companies, stock exchanges, and other market participants in Switzerland, as well as enforcing Swiss financial markets laws.<ref>{{cite web|url=https://www.finma.ch/en/finma-public/finma-kurz-erkl%C3%A4rt/|name=How FINMA helps investors and individuals|org=FINMA}}</ref>
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=== Cryptocurrency ===
 
=== Cryptocurrency ===
  
Switzerland is considered to be a crypto-friendly nation for the most part; Johann Schneider-Ammann, the country's economics minister, claims that Switzerland wants "to be the crypto nation." In February 2018, FINMA released a set of guidelines for local [[ICO]]s, in order to help clarify when to apply Swiss AML and securities laws.
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Switzerland is considered to be a crypto-friendly nation, for the most part; Johann Schneider-Ammann, the country's economics minister, said that Switzerland wants "to be the crypto nation." In February 2018, FINMA released a set of guidelines for local [[ICO]]s to help clarify when and how they should observe Swiss AML and securities laws.
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The Canton of Zug in northern Switzerland is a popular location for [[cryptocurrency]] startups. One reason for this may be that financial services companies seeking to do business in Switzerland are usually required either to be a member of a self-regulatory organization (SRO) or to be approved by FINMA. For a time, FINMA specified on its website that "the use of [[bitcoin]]s as a means of payment is not state-controlled," so technically those trading bitcoin for one reason or another were not required to have a license to do so.<ref>{{cite web|url=https://news.bitcoin.com/bitcoin-companies-legally-operate-switzerland/|name=How Bitcoin Companies can Legally Operate in Switzerland|org=Bitcoin.com}}</ref>
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Under FINMA's new regulatory framework for cryptocurrencies and ICOs, cryptocurrency companies are only required to be licensed by FINMA if the services they offer fall under one of three categories: payments, utilities, or assets.<ref>{{cite web|url=https://www.coindesk.com/switzerland-will-treat-some-icos-as-securities-finance-regulator-says/|name=Swiss Finance Regulator to Treat Some ICO Tokens As Securities|org=Coindesk}}</ref>
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=== Cryptocurrency Exodus ===
  
The Canton of Zug in northern Switzerland is a popular location for [[cryptocurrency]] startups. One reason for this may be that financial services companies seeking to do business in Switzerland are usually required to either be a member of a self-regulatory organization (SRO) or be approved by FINMA; however, since FINMA specifies that "the use of [[bitcoin]]s as a means of payment is not state-controlled," technically those trading bitcoin for one reason or another are not required to have a license to do so.<ref>{{cite web|url=https://news.bitcoin.com/bitcoin-companies-legally-operate-switzerland/|name=How Bitcoin Companies can Legally Operate in Switzerland|org=Bitcoin.com}}</ref>
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Two Swiss banks, including Zuercher Kantonalbank (ZKB), closed numerous accounts in 2018 for engaging in cryptocurrency-related activities. As a result of this, a large number of cryptocurrency startups began leaving the Canton of Zug, dubbed Switzerland's "Crypto Valley," in favor of the neighboring principality of Liechtenstein, or other political areas with, supposedly, more crypto-friendly banking systems. Members of the Swiss National Bank and banker's association, as well as representatives of FINMA, met in July 2018 to discuss how the Swiss government should regulate cryptocurrencies to protect investors, as well as preserving Switzerland's reputation as a haven for ICOs.<ref>{{cite web|url=https://news.bitcoin.com/finma-holds-seeks-stem-exodus-of-swiss-cryptocurrency-firms/|name=FINMA Seeks to Stem Exodus of Swiss Cryptocurrency Firms|org=Bitcoin.com}}</ref><ref>{{cite web|url=https://www.reuters.com/article/us-cryptocurrencies-banking-switzerland/switzerland-seeks-to-regain-cryptocurrency-crown-idUSKBN1K91AY|name=Switzerland seeks to regain cryptocurrency crown|org=Reuters}}</ref>
  
=== ICO Regulation ===
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== ICO Regulation ==
  
 
According to FINMA's official guidelines, there are three types of ICOs, based on the nature of the services their [[digital tokens]] confer:<ref>{{cite web|url=https://www.ft.com/content/52820f90-1307-11e8-940e-08320fc2a277|name=Switzerland sets out guidelines to support initial coin offerings|org=Financial Times}}</ref><ref>{{cite web|url=https://www.finma.ch/en/news/2018/02/20180216-mm-ico-wegleitung/|name=FINMA publishes ICO guidelines|org=FINMA}}</ref>
 
According to FINMA's official guidelines, there are three types of ICOs, based on the nature of the services their [[digital tokens]] confer:<ref>{{cite web|url=https://www.ft.com/content/52820f90-1307-11e8-940e-08320fc2a277|name=Switzerland sets out guidelines to support initial coin offerings|org=Financial Times}}</ref><ref>{{cite web|url=https://www.finma.ch/en/news/2018/02/20180216-mm-ico-wegleitung/|name=FINMA publishes ICO guidelines|org=FINMA}}</ref>
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! Payment ICO !! Utility ICO !! Asset ICO
 
! Payment ICO !! Utility ICO !! Asset ICO
 
|-
 
|-
| Tokens can function as a means of payment over time, have no further functions or links to other development projects|| Tokens give access to a digital service || Tokens pay dividends, interest, give rights to a share of company revenue
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| Tokens can function as a means of payment over time and have no further functions or links to other development projects|| Tokens give users access to a digital service || Tokens pay dividends, interest, give rights to a share of company revenue
 
|-
 
|-
 
| '''Must comply with AML regulations; not regulated as securities''' || '''Regulated as securities''' || '''Regulated as equities, bonds, or derivatives'''
 
| '''Must comply with AML regulations; not regulated as securities''' || '''Regulated as securities''' || '''Regulated as equities, bonds, or derivatives'''
 
|}
 
|}
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=== Regulatory Enforcement ===
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In February 2019, FINMA named Crypto Capitals a fraudulent cryptocurrency broker. According to FINMA, the firm is suspected of conducting unauthorized activities in the Swiss financial markets. According to FINMA, the firm is also unlicensed. This was one of approximately twelve cases that FINMA is pursuing.<ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/news/swiss-watchdog-continues-war-on-unregistered-crypto-brokers/|name=Swiss Watchdog Continues War on Unregistered Crypto Brokers|org=Finance Magnates|date=February 27, 2019}}</ref>
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=== Stablecoins ===
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In September 2019, FINMA released new guidelines for [[stablecoin]]s, saying that all applicable KYC and AML laws would be observed with stablecoins, and that additional requirements beyond having a payment system license may be required for stablecoin projects. The guidelines also singled out [[Libra]], the stablecoin project started by [[Facebook]].<ref>{{cite web|url=https://www.forbes.com/sites/benjaminpirus/2019/09/16/finma-application-from-facebooks-cryptocurrency-libra-might-not-be-good-enough-to-satisfy-regulators/#111034f01d74|name=FINMA Application From Facebook’s Cryptocurrency Libra Might Not Be Good Enough To Satisfy Regulators|org=Forbes|date=September 17, 2019}}</ref><ref>{{cite web|url=https://www.finma.ch/en/news/2019/09/20190911-mm-stable-coins/|name=FINMA publishes ‘stable coin’ guidelines|org=FINMA|date=September 17, 2019}}</ref>
  
 
== References ==
 
== References ==

Latest revision as of 15:30, 17 September 2019


Swiss Financial Market Supervisory Authority (FINMA)
Finma.png
Founded 2009
Headquarters Bern, Switzerland
Key People Mark Branson, CEO
Employees 501-1000
Twitter @FINMA_media
LinkedIn Profile
Website FINMA Homepage

The Swiss Financial Market Supervisory Authority (FINMA) is Switzerland's financial markets regulator.[1]

Overview

FINMA was founded in 2009 by three Swiss institutions: the Swiss Federal Banking Commission (SFBC), the Federal Office of Private Insurance (FOPI), and the Anti-Money Laundering Control Authority (AMLCO). The establishment of FINMA was an attempt to consolidate the responsibility of supervising the Swiss financial markets into a single entity.[2]

FINMA is responsible for monitoring banks, insurance companies, stock exchanges, and other market participants in Switzerland, as well as enforcing Swiss financial markets laws.[3]

Cryptocurrency

Switzerland is considered to be a crypto-friendly nation, for the most part; Johann Schneider-Ammann, the country's economics minister, said that Switzerland wants "to be the crypto nation." In February 2018, FINMA released a set of guidelines for local ICOs to help clarify when and how they should observe Swiss AML and securities laws.

The Canton of Zug in northern Switzerland is a popular location for cryptocurrency startups. One reason for this may be that financial services companies seeking to do business in Switzerland are usually required either to be a member of a self-regulatory organization (SRO) or to be approved by FINMA. For a time, FINMA specified on its website that "the use of bitcoins as a means of payment is not state-controlled," so technically those trading bitcoin for one reason or another were not required to have a license to do so.[4]

Under FINMA's new regulatory framework for cryptocurrencies and ICOs, cryptocurrency companies are only required to be licensed by FINMA if the services they offer fall under one of three categories: payments, utilities, or assets.[5]

Cryptocurrency Exodus

Two Swiss banks, including Zuercher Kantonalbank (ZKB), closed numerous accounts in 2018 for engaging in cryptocurrency-related activities. As a result of this, a large number of cryptocurrency startups began leaving the Canton of Zug, dubbed Switzerland's "Crypto Valley," in favor of the neighboring principality of Liechtenstein, or other political areas with, supposedly, more crypto-friendly banking systems. Members of the Swiss National Bank and banker's association, as well as representatives of FINMA, met in July 2018 to discuss how the Swiss government should regulate cryptocurrencies to protect investors, as well as preserving Switzerland's reputation as a haven for ICOs.[6][7]

ICO Regulation

According to FINMA's official guidelines, there are three types of ICOs, based on the nature of the services their digital tokens confer:[8][9]

Payment ICO Utility ICO Asset ICO
Tokens can function as a means of payment over time and have no further functions or links to other development projects Tokens give users access to a digital service Tokens pay dividends, interest, give rights to a share of company revenue
Must comply with AML regulations; not regulated as securities Regulated as securities Regulated as equities, bonds, or derivatives

Regulatory Enforcement

In February 2019, FINMA named Crypto Capitals a fraudulent cryptocurrency broker. According to FINMA, the firm is suspected of conducting unauthorized activities in the Swiss financial markets. According to FINMA, the firm is also unlicensed. This was one of approximately twelve cases that FINMA is pursuing.[10]

Stablecoins

In September 2019, FINMA released new guidelines for stablecoins, saying that all applicable KYC and AML laws would be observed with stablecoins, and that additional requirements beyond having a payment system license may be required for stablecoin projects. The guidelines also singled out Libra, the stablecoin project started by Facebook.[11][12]

References