Cryptocurrency & Anti-Money Laundering

Payment tokens are one of the 3 token categories that FINMA, the Swiss Financial Market Supervisory Authority, recognised. Cryptocurrencies can be used as a means of payment for acquiring services or goods, or as a means of value transfer.

The second token type, accordingly to the FINMA’s classification, is the Utility token that provides access to a service or application by means of a blockchain-based infrastructure.

The third type is the Asset token that can include debt or equity claim on the issuer. The Asset token can enclose, for example, a share in future company earnings or future capital flows. These tokens are analogous to equities, bonds or derivatives.

The same token can enclose functions of different token types. Such token is considered to be hybrid and can create for the involved parties liabilities issued from different legislations.

Exchange of digital currencies can represent a money laundering risk. Anonymity and cross-border asset transfers make the use of cryptocurrency attractable for money laundering purposes. Therefore, persons dealing with these assets on a professional basis should be aware of the money laundering risks.

Our firm can assist you in:

  • Tax and legal aspects of your cryptocurrency activity.
  • Voluntary disclosure of the previous activity.

  • Categorisation of the token and filling in all binding legal requirements.
  • Filling in Anti-Money Laundering requirements applicable to your cryptocurrency activity.

Example Cryptocurrency & Anti-Money Laundering cases we have worked on:

  • Issuance of a hybrid token (utility & payment) and assistance during its sale to the investors.
  • Structuring and issuance of an asset token representing shares of a company and assistance of its sale to investors during a crowdfunding campaign.

  • Filling in due diligence requirements related to the Anti-Money Laundering legislation during a crowdfunding event (ICO).
  • Setting up an appropriate corporate structure allowing the issuance of the shares of the company in the form of Ethereum based tokens.

We can offer you proactive advice regarding Cryptocurrency & Anti-Money Laundering

Contact Us today