The news spread like wildfire and Friendz team has been working day and night to keep pace with it.
On the 16th of February 2017, the Swiss Financial Market Supervisory Authority FINMA set out guidelines on how it intends to apply financial market legislation to ICOs established in the Crypto Valley.
Simply put, their goal is creating transparency in a market which is still considered risky and unknown due to the high level of demand for launching and participating in ICOs.
Following the rules provided, Friendz caught up implementing its KYC system. Rigtht after the release, Friendz team has already started to implement its system and work on a way to comply with anti-money laundering regulations, meeting all the FINMA requirements.
What does this change of regulation mean for Friendz?
The new regulation set some rules for the KYC procedures and Friendz immediately started implementing its system to optimize the flow. Now KYC is required only if the contribution will be of more than 5 ETH.
Which beg the question — what if you already have submitted KYC in the previous weeks? If you don’t want to contribute with more than 5 ETH, just forget about it, otherwise, update it!
We know, this could be seen as a sudden move that close to the launch of our ICO, but think about it. We are doing this not only to comply with the Swiss authority, but also to provide contributors with a higher degree of protection for their support. Friendz is, in fact, one of the first ICOs which will be 100% following and respecting FINMA regulation.
Curious to know what are the most important takeaways coming along with the disclosure of the new set of guidelines for ICOs?
First of all, the FINMA, depending on how the ICO is designed, reserves the right to subject the project to specific regulatory requirements. At the present moment, in fact, nothing such as ICO-specific regulation exists.
Secondly, a classification of token will be applied based on their economic function and purpose.Three kinds of token will be recognised: Payment tokens, Utility tokens and Asset tokens.
Each category of them has its own peculiar characteristics: Friendz coins, for example, which can be categorized as Utility tokens, are useful for providing access to digital services in the platform. The Payment tokens, instead, are intended to be used as a means of payment for acquiring goods or services and the Asset tokens represent assets such as a debt or equity. FINMA classification includes hybrid forms of the three categories as well.
The main goal of the FINMA with its new regulation is to protect the financial system from money laundering and the support of terrorist organisations. Consequently, asking to ICOs to establish the identity of potential contributors became a natural request to be satisfied.
Friendz prompt reaction is a clear signal of what side the company has taken.
One step closer to transparency, two steps closer to the launch of Friendz ICO on the 1st of March.