Just as it was starting to look like the wild west for Initial Coin Offerings (ICOs) in Switzerland, Swiss regulators lay down the law. The same day that South Korea banned ICOs, the Swiss Federal Market Supervisory Authority (FINMA) issued a guidance on ICOs requiring more compliance.
Act 1739 of 2014 introduced a complementary tax called the “Normalization Tax”, associated to the temporary “Wealth Tax”, where the taxpayers who have not disclosed the assets possessed abroad or have included non-inexistent liabilities in previous income tax returns, were able to declare them or exclude them.
As Initial Coin Offerings draw more attention to investors outside of the blockchain ecosystem, the demand for compliance continues to grow. And with it, so too the necessity for a sound business structure accepted by regulators. Switzerland is poised to lead the way.