Lawside Attorneys-at-Law

🌐 Reflecting on an Insightful Day at the Crypto Symposium 🌐 Yesterday, I had the pleasure of attending the Crypto Symposium organized by the Money Laundering Reporting Office Switzerland (MROS) of the Federal Police fedpol. This exceptional event brought together experts from international regulatory and law enforcement agencies such as FinCEN, NCA, FBI, and blockchain analysis companies. The presentations provided a deeper understanding of business models within criminal networks involving cryptocurrencies (e.g., pig butchering scam, a.k.a. Sha Zhu Pan). These sessions highlighted both the evolving tactics of illicit actors and the advanced measures being developed to counter these activities. As someone who advises financial institutions and intermediaries on anti-money laundering (AML) regulations on a daily basis, I found this experience invaluable. Keeping abreast of the latest findings and risks in crypto transactions enhances my ability to effectively advise clients and protect them from the multifaceted threats of financial crime. Connecting with new and familiar faces, and engaging in thought-provoking discussions during the breaks was an added bonus. I look forward to applying these insights to further support financial integrity in the ever-evolving landscape of cryptocurrency and AML compliance. I would recommend anyone working in this field to attend this annual event. #CryptoCompliance #AntiMoneyLaundering #FinancialIntegrity #Blockchain #AML

We are thrilled to announce that Emanuel Georg Tschannen has joined the partnership of Lawside Attorneys-at-Law. His extensive expertise will further strengthen our legal services in corporate and financial law. Welcome Emanuel! Hans Kuhn, Sebastian Wälti, Emanuel Georg Tschannen, Edith Adler Kuhn #corporatelaw #financiallaw #litigation #employmentlaw We are going the extra mile to provide hands-on legal advise and innovative solutions. https://lawside.ch/team/

𝗙𝗜𝗡𝗠𝗔'𝘀 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲 – 𝗪𝗵𝗮𝘁'𝘀 𝗻𝗲𝘄?   On 26 July 2024 FINMA has published a new stablecoin guidance (Guidance 06/2024 "Stablecoins: Risks and challenges for issuers of stablecoins and banks providing guarantees"). This has caused quite some confusion and raised questions. Our initial assessment:   The biggest part of Guidance 06/2024 is not new but rather consolidates FINMA's existing practice and guidance, including the Stablecoin Guidance of 11 September 2019 and explanations in FINMA's 2021 Annual Report.   Guidance 06/2024 strengthens and possibly expands whitelisting requirements already in place for banks issuing stablecoins, i.e. an issuer does not only need to identify the first acquirer and the last holder wishing to redeem a stablecoin, but any intermediate holder. This goes well beyond what other relevant jurisdictions and the FATF require.   Guidance 06/2024 also reiterates that stablecoins vested with a redemption right are subject to banking regulation. Most stablecoin issuers rely on a guarantee provided by a bank in accordance with article 5(3)(f) Banking Ordinance. Guidance 06/2024 clarifies in a very helpful manner the conditions that must be met in order for relying on the guarantee exception. At the same time FINMA seems to call on the legislator to review and possibly limit the scope of this exception.   There is broad consensus that the legal and regulatory framework for stablecoins in Switzerland is inadequate. Swiss authorities, including the State Secretariat for International Finance (SIF), should therefore speed up the ongoing review of the fintech license which is understood to include proposals for a coherent regulation of stablecoins under Swiss law.   You can find the full article with further assessments and comments on our website (https://lnkd.in/eis6emqU). Hans Kuhn Sebastian Wälti #lawside #FINMA #stablecoin #banking

FINMA published its Guidance 03/2024 regarding findings from FINMA's cyber risk supervision, clarification of FINMA Guidance 05/2020 and scenario-based cyber risk exercises. The Guidance is relevant for all institutions supervised by FINMA. Some of the key elements are: 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 - Cyber risks are among the most significant risks for supervised institutions, and therefore need to be recognised as a separate risk category in the management of qualitative operational risks, and an appropriate risk appetite and risk tolerance need to be defined. - Key controls for cyber risks need to be integrated into the internal control system (ICS). - Separate the operational management of cyber risk from the independent control function. 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝘃𝗲 𝗺𝗲𝗮𝘀𝘂𝗿𝗲𝘀 - FINMA has observed a positive trend in recent years (e.g. better and increasingly effective protective measures against DDoS attacks). - Data loss prevention (DLP) measures should also cover sensitive personal data, business secrets, intellectual property, etc. 𝗗𝗲𝘁𝗲𝗰𝘁𝗶𝗼𝗻, 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗲 𝗮𝗻𝗱 𝗿𝗲𝗰𝗼𝘃𝗲𝗿𝘆 Effective preparation for cyber events and crises is critical for regulated institutions. Creating and testing realistic response plans is key to managing stress situations caused by cyber attacks. It is important to learn from these incidents and implement the necessary improvements in a timely manner. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗙𝗜𝗡𝗠𝗔 𝗚𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 𝟬𝟱/𝟮𝟬𝟮𝟬 Cyber attacks pursuant to Art. 29 Para. 2 FINMASA must be reported within 24 hours of the discovery of a cyber attack with an initial report to the institution's key account manager at FINMA. The report should contain an initial assessment of the criticality and a concise description of the facts established to date. An initial report submitted to FINMA within 24 hours can be withdrawn at any time if, after further investigation of the severity of the cyber attack, the institution ultimately concludes that it does not meet the materiality threshold. 𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝘀 𝘀𝘂𝗯𝗷𝗲𝗰𝘁 𝘁𝗼 𝗙𝗜𝗡𝗠𝗔 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝟮𝟯/𝟭 Institutions subject to FINMA Circular 23/1 must conduct risk-based and scenario-based cyber exercises in accordance with margin no. 70. The scope of these exercises follows the principle of proportionality. Systemically important institutions should include red teaming exercises, while non-systemically important institutions should conduct at least one tabletop exercise per year. Feel free to reach out if you have any questions or need further clarification on implementing these guidelines within your organization. Note: This post is based on the FINMA Guidance 03/2024. For detailed information, please refer to the official FINMA document. Lawside Attorneys-at-Law Hans Kuhn #CyberRisk #FinancialSecurity #RegulatoryCompliance #CyberAwareness

🚀 Exciting News! 🚀 Our partner Dr. Hans Kuhn has been recognized by Who's Who Legal (WWL) as a leader in the field of #Fintech & #Blockchain in #Switzerland in their report 2024! 🏆 Hans Kuhn Sebastian Wälti #Lawside

🔒 𝐑𝐞𝐭𝐡𝐢𝐧𝐤𝐢𝐧𝐠 𝐂𝐫𝐲𝐩𝐭𝐨 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧: 𝐀 𝐂𝐚𝐥𝐥 𝐟𝐨𝐫 𝐁𝐚𝐥𝐚𝐧𝐜𝐞𝐝 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 🔒 The Basel Committee on Bank Supervision, the global banking regulator, proposes punitive capital requirements for crypto-assets held by banks. The Basel Crypto Standard is due for adoption by member states by 1 January 2025. Switzerland, one of the founding members of the Basel Committee and a pioneer in crypto regulation, finds itself at a crossroads, debating the balance between innovation and financial stability. Our latest article delves into the Basel Crypto Standard and the consequential debates it has sparked within the financial and crypto communities. The Swiss Blockchain Federation today also published a position paper prepared by a working group chaired by our partner Hans Kuhn. The paper concludes that the regulation proposed by the Basel Committee violates the principle of technological neutral regulation, is not compatible with Switzerland’s blockchain strategy and may be challenged on legal and constitutional grounds. It therefore calls on the authorities not to implement the Basel Crypto Standard and instead develop a more balanced regulatory approach. The dialogue around the Basel Crypto Standard raises crucial questions about the future of crypto assets in banking, but also the role of global standard setters in this respect. 👉 Read more about this pivotal moment for crypto regulation and Switzerland's strategic response here: https://t.ly/DXJep 👉 The position paper of the Swiss Blockchain Federation can be found here: https://t.ly/UWanr #CryptoRegulation #Blockchain #FinancialInnovation #Switzerland #Blockchain #Regulation #Finance #Switzerland #Crypto 💡🚀 Hans Kuhn Sebastian Wälti Swiss Blockchain Federation

🌍 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗨𝗽𝗱𝗮𝘁𝗲 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗙𝗔𝗧𝗙 𝗣𝗹𝗲𝗻𝗮𝗿𝘆 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 - 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟰 🌍 The Financial Action Task Force (FATF), the global watchdog for money laundering, terrorist financing, and proliferation financing, has released its latest statements following the plenary meeting this February. 🔴 𝗛𝗶𝗴𝗵-𝗥𝗶𝘀𝗸 𝗝𝘂𝗿𝗶𝘀𝗱𝗶𝗰𝘁𝗶𝗼𝗻𝘀: Call for Action - The FATF has identified countries with significant deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CTF) regimes, urging enhanced due diligence and, in severe cases, counter-measures. 🔵 𝗝𝘂𝗿𝗶𝘀𝗱𝗶𝗰𝘁𝗶𝗼𝗻𝘀 𝘂𝗻𝗱𝗲𝗿 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗠𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴 - A list of countries actively working with the FATF to address strategic deficiencies and subject to increased monitoring has also been published. These jurisdictions have committed to resolving their identified issues promptly. The FATF's efforts in identifying and working with these jurisdictions are crucial for maintaining the integrity of the international financial system. Switzerland, as a member of the FATF, along with other member countries, is advised to consider these updates in their risk management strategies. For detailed information on the jurisdictions affected and guidance for financial intermediaries: - High-Risk Jurisdictions: https://lnkd.in/e2t_PrGr - Jurisdictions under Increased Monitoring: https://lnkd.in/e5Etp-W5 Sebastian Wälti Hans Kuhn #FATF #Compliance #AML #CTF #RegulatoryUpdates #Finance #GlobalFinance #lawside

Good news for staking service providers: The Swiss Financial Market Supervisory Authority FINMA has published the Guidance 08/2023 on its supervisory practice in the area of staking, clarifying that staked crypto-based assets generally qualify as custody assets and that staking by unauthorised market participants is possible. Read our latest blog post for more details: https://lnkd.in/e6uGYNXA #fintech #staking #finma Hans Kuhn Sebastian Wälti

Das EHRA veröffentlichte eine Praxismitteilung, wonach Kapitaleinlagen gemäss Art. 633 Abs. 1 OR auch bei Personen nach Art. 1b BankG (sog. «Fintechs») hinterlegt werden können. Grund für diese Klarstellung ist die Anfang des Jahres in Kraft getretene Aktienrechtsrevision, wonach der Wortlaut von Art. 633 Abs. 1 OR neu von einer Bank im Sinne von Art. 1 Abs. 1 BankG spricht. Mit der erfreulichen Praxismitteilung hat das EHRA bestätigt, dass diese Bestimmung weit auszulegen ist und (wie bisher) auch Fintechs sogenannte Kapitaleinzahlungskonti (KEK) eröffnen können. Lawside (Hans Kuhn) hat YAPEAL in der Kommunikation mit dem State Secretariat for International Finance SIF unterstützt. Ausblick: Gemäss der Botschaft zur Änderung des Bankengesetzes im Hinblick auf die Einführung einer staatlichen Liquiditätssicherung (Public Liquidity Back-stop, PLB, BBl 2023 2165) soll die bestätigte Praxis in die massgebenden Gesetzesbestimmungen (Art. 633 Abs. 1 und Art. 653e Abs. 2 OR) aufgenommen werden. Die vollständige Praxismitteilung des EHRA kann unter dem folgenden Link heruntergeladen werden: https://lnkd.in/gMsbseDh #fintech