The Swiss Financial Market Supervisory Authority (FINMA) supplement to its Initial Coin Offering (ICO) guidelines which outline its treatment of stable coins. An excerpt from the FINMA press release of September 11, 2019:
The Libra Association asked FINMA for an assessment of how the supervisory authority would classify the planned Libra project including the issuance of a ‘stable coin’ under Swiss supervisory law.
Among projects based on blockchain technology, FINMA has observed an increase in the number of projects to create so-called ‘stable coins’ since mid-2018. The aim of such projects is mostly to minimise the fluctuations in value typical of payment tokens such as Bitcoin by backing the tokens with assets such as fiat currencies, commodities, real estate or securities. In the supplement to its Guidelines on Initial Coin Offerings (ICOs), FINMA is today publishing information indicating how it will assess such ‘stable coins’ within its supervisory remit under Swiss supervisory law.
In Switzerland, such a project would fall under financial market infrastructure regulation. The project as it is presently envisaged would require a payment system licence from FINMA, on the basis of the Financial Market Infrastructure Act (FMIA)