Blockchain EXE LEGAL #3：Current Regulation of ICO in Switzerland／スイスにおけるICOの現行の規制 Andreas Furrer 教授（国際私法・欧州法・ルツェルン大学・MME法律事務所）

1. Prof. Dr. Andreas Furrer
Current Regulation of ICO in
Switzerland
Presentation at the Seminar of BlockchainEXE Japan
in collaboration with Centaurus Works
1-4-4 Kojimachi, Chiyoda-ku, Tokio
October 17, 2018
Prof. Dr. Andreas Furrer
Professor of Private Law, Comparative Law,
Private International Law and European Law, University of Lucerne
MME Legal | Tax | Compliance, Zürich/Zug

2. Prof. Dr. Andreas Furrer
University of Lucerne MME Legal | Tax | Compliance
Law School Zollstrasse 62
Frohburgstrasse 3 CH-8031 Zurich
6002 Lucerne
Tel.: +41 41 229 53 60 Tel.: +41 44 254 99 66
Andreas.Furrer@unilu.ch Andreas.Furrer@mme.ch
www.unilu.ch/andreas-furrer http://www.mme.ch/en/team/andreas_furrer
MME Legal | Tax | Compliance:
- Offices in Zurich and Zug
- 24 Partners (Legal + Tax)
- 6 Counsels
- approx. 100 Employees
2

3. MME’s Experience in Supporting ICOs / TGEs
150m USD
9m USD
8m USD
2m USD
3m USD +
6m USD
4m USD +18m USD
3Prof. Dr. Andreas Furrer

4. Topic Overview
Feasibility
Team
Business Idea
Business Modell
Legacy
Project Assessment
Development Stage
Technology
Token Functionality
IP Strategy
Legal Assessment
Regulations
Jurisdiction
Contracts
Tax
4Prof. Dr. Andreas Furrer

5. Analysis of the Project for Sustainable Advise: Token Functionality
Regulatory
Risk
Assessment
CH
Regulatory
CH
Distribution
Project Token
Token Development Stage
FINMA Classification Model
Utility Token
Payment Token
Asset Token
 Pre-Finance (Pre BCP)
 Voucher
BCP Classification Model
5Prof. Dr. Andreas Furrer

6. Issuance of Utility Tokens
• Definition FINMA
Tokens that are intended to digitally provide access to an application or service by
means of a blockchain-based infrastructure
• Level of Regulation: Low
• Applicable Regulation: None
• Examples
Native Tokens for blockchain protocols (ETH, ADA, NEO, IOTA)
• Open Questions in Practice
• Looking at the narrow definition of FINMA, it is unclear if a token qualifies as a
Utility Token if it offers more than a mere access to an application or service.
• Most native tokens are used to pay for transactions fees on the network to prevent
the blockchain from being spammed with useless information: Is that already a
payment function?
Token Generating Event (ICO/TGE)
6Prof. Dr. Andreas Furrer

7. • Issuance of Payment Tokens
• Definition
Tokens that are intended to be used, now or in the future, as a means of payment for
acquiring goods or services or as a means of money or value transfer. Payment tokens
give rise to no claims on their issuer.
• Level of Regulation: Medium
• Applicable Regulation: Swiss Anti-Money Laundering Act (AMLA)
Enforced by Self Regulation Organizations (SRO)
• Membership of ICO-Issuer or service provider is member of SRO
• SRO is under supervision of FINMA
• Open Questions in Practice
• The applicability of AMLA is based on the trigger “issuance of a means of payment”.
FINMA holds that the terms “means of payment” only covers means that are used for
peer-to-peer transactions
• How to classify tokens that are redeemed with the issuer (voucher function;
pre-payment of service)?
Token Generating Event (TGE)
7Prof. Dr. Andreas Furrer

8. Issuance of Asset Tokens (Security Tokens)
• Definition FINMA
Tokens that represent assets such as a debt, derivatives or equity claims on the
issuer or enable physical assets to be traded on the blockchain (in particular shares,
bonds, and participation certificates)
• Level of Regulation: Medium to High
• Applicable Regulation
• Swiss Code of Obligations (SCO)
• Swiss Financial Market Acts such as Banking Law, Insurance Law, Swiss Collective
Investment Schemes, Swiss Anti-Money Laundering Act (AMLA)
• Forthcoming: Financial Services Act (encated in in 2019)
• Examples
Daura, pending projects, NEX (Neon Exchange) issued in Liechtenstein
• Open Questions in Practice:
FINMA: Utility Tokens and Payment Tokens can additionally qualify as Asset Tokens if
• (i) they have an investment purpose, or
• (ii) cannot be used according to their functionality at the point of issuance.
Is this reading within the meaning of the CO and what are the consequences?
Token Generating Event (TGE)
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9. Token Exchange Platforms in Switzerland
9Prof. Dr. Andreas Furrer

10. Process of a Token Generating Event TGE (ERC20)
ETH SCS
Regulation
Project Wallet
Bank/Wallet
ETH
Project Token
- Voucher
- Pre-Operational
- Operational
ECA / SAFT
B
Development
AML
 KYC/AML
 Whitelisting PUK
 Transaction Screening
ETH / FIAT
Governance
AML
 Whitepaper  Tech/Project
Description
 T&C  Functionality of
SCS
 Token
Functionality
 Risks
 Legal (& Security) Audit
10Prof. Dr. Andreas Furrer

11. Asset Token: Swiss Civil Law
certificated
Securities
Uncertifacted securites
(Wertrechte)
bearer
instruments
Ordrepapiere (e.g.
registered shares
with certficted
securities)
transfer by dower
Direct (e.g. with
ERC-721 token)
Co-ownership of
global certificate
(e.g. with ERC-
20 token)
Assignment (requirement
of written form)
Daura Project
(MME/Swisscom)
blank transfer
Subordination of
the book-entry
right or the transfer
under foreign law
Contract (e.g.
license or
franchise
contracts)
Derivate
book effects
11Prof. Dr. Andreas Furrer

12. Many thanks
for your attention
Any questions?
Prof. Dr. Andreas Furrer
University of Lucerne MME Legal ¦ Tax ¦ Compliance
Law School Zollstrasse 62
Frohburgstrasse 3 CH-8031 Zurich
CH-6002 Lucerne
Tel.: +41 41 229 53 60 Tel.: +41 44 254 99 66
Andreas.Furrer@unilu.ch Andreas.Furrer@mme.ch
www.unilu.ch/andreas-furrer http://www.mme.ch/en/team/andreas_furrer