NEW YORK — Switzerland's financial watchdog, the Swiss Financial Market Supervisory Authority, is concerned that some initial coin offerings are violating the country's laws against "terrorist financing."
FINMA said in a statement certain ICOs may be subject to existing financial regulations.
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Still, the massive growth of the ICO market, which has ballooned to more than $2 billion this year, according to data from fintech analytics firm Autonomous NEXT, has forced the agency to crack down.
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On the whole, the guidance has been viewed positively by folks in the cryptocurrency community.
Oliver Bussmann, president of the Crypto Valley Association, a Swiss organization, said in a statement emailed to Business Insider that the announcement comes as no surprise.
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"The agency appreciates the innovative potential of ICOs and is cognizant of the groundbreaking implications of the technology ICOs are driving," he said.