Switzerland’s financial regulator brought charges against eight “initial coin offering” (ICO) blockchain projects for breaching anti-money laundering rules last year. ICOs raise money from the public by selling digital tokens that promise to hold future value for the consumer.
The fundraising activity is designed to make it easier for start-ups to raise capital, but it has also attracted a number of fraudulent operators. The Swiss Financial Market Supervisory Authority (FINMA) investigated 60 ICOs in 2019, according to its annual report.
More than ten violated anti-money laundering rules, leading to charges being laid against the people behind eight of these ICOs. Eight companies were placed on FINMA’s warning list of firms to be avoided by the public. Enforcement proceedings were later started against three of the companies.
FINMA counted 94 ICO operations starting up in Switzerland last year compared to 184 in 2018.
In its annual reportExternal link, FINMA also warned about a growing threat from fraudulent companies that offer to store, trade or invest cryptocurrencies on behalf of people.
“There is an increasing number of fraudulent websites relating to these services, which offer their customers supposed investments in cryptocurrencies, but do not use any money they receive for the proper purposes,” it states.
Last year, a criminal complaint was brought against one unnamed provider of token custody and trading services. Enforcement proceedings were opened into a firm that acted as a go-between for clients and cryptcurrency exchanges and another company suspected of illegally selling securities in the shape of digital tokens.
In some cases, companies were forced to pay back money that they had unlawfully obtained from the public.
Popular Stories
More
Demographics
Flat-hunting in Switzerland’s cheapest and most expensive municipalities
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
Swiss House of Representatives backs online Schengen visa system
This content was published on
In future, Schengen visa applications should be made via a European Union online platform. On Tuesday, Switzerland's House of Representatives adopted a revision of Swiss legislation on this issue.
UBS study: Switzerland is still the richest country in the world
This content was published on
Average per-capita wealth in Switzerland rose last year to $687,000 (CHF561,000), the UBS Global Wealth Report said on Wednesday.
UBS and Pictet report data leak after cyber attack on provider Chain IQ
This content was published on
Swiss banks UBS and Pictet on Wednesday confirmed they had suffered a data leak due to a cyber attack on their subcontractor Chain IQ in Switzerland.
Iran will respond firmly if US gets directly involved in Israeli strikes, says UN ambassador
This content was published on
Iran says it will respond firmly to the United States if it becomes directly involved in Israel's military campaign, the Iranian ambassador to the United Nations in Geneva said on Wednesday.
Swiss politicians concerned by cut to Lausanne-Paris TGV services
This content was published on
The Vaud cantonal parliament wants to maintain six direct daily TGV high-speed train services between Lausanne and Paris.
This content was published on
Switzerland and Norway have signed a bilateral agreement for the future storage of carbon dioxide (CO2) under the North Sea.
Switzerland must better protect whistleblowers, says OECD
This content was published on
Switzerland must step up its anti-corruption efforts and provide better protection for whistleblowers while increasing fines for guilty firms, an OECD anti-bribery group says.
Art Basel 2025 registers numerous million-dollar sales on first day
This content was published on
Galleries at the prestigious Art Basel fair in Switzerland have registered numerous million-dollar sales on the first preview day on June 17.
Trust in Swiss news is rising, Reuters report shows
This content was published on
Trust in the news has increased in Switzerland, according to the Reuters Institute Digital News Report 2025. Almost half (46%) of adults who took part in a recent survey said they generally trusted Swiss news, up 5%.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Switzerland awards first fintech banking license
This content was published on
The bank is building a community-style customer base known as “Yapsters” who will be among the first to try out its services based around their own needs. This might include a new style of account for customers’ children or a robo-advisory service that balances income, fixed household costs and a client’s desire for different goods. YAPEALExternal…
This content was published on
Switzerland must do more to deal with the growing threat of cyber- attacks, the Swiss financial watchdog FINMA has warned.
This content was published on
swissinfo.ch talked to Kurt Nydegger and Gérald Vernez from the defence ministry, who have been asked to present a strategy paper by the end of 2011 on possible technical and legal measures to avert attacks. Switzerland is particularly vulnerable to cyber attacks because of its high-tech infrastructure, while the danger is real but hard to…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.