MetaHash Cryptocurrency Recognized By Switzerland’s FINMA As Utility Token

News, Regulation | July 13, 2018 By:

The Swiss Financial Market Supervisory Authority (FINMA) has officially recognized the MetaHash coin as a utility token with payment functions.

In February of this year, FINMA released its initial coin offering (ICO) guidelines and classification of tokens. The financial regulator categorizes tokens into three types, but hybrid forms are possible: Utility tokens are tokens which are intended to provide digital access to an application or service. Payment tokens are synonymous with cryptocurrencies and have no further functions or links to other development projects. While asset tokens represent assets such as participations in real physical underlyings, companies, or earnings streams, or an entitlement to dividends or interest payments.

According to the MetaHash team, the process of applying to FINMA included the preparation of required documentation and legal opinion with the help of leading regulatory and tax advisors, as well as arranging a public opening of the functioning network prior to the start of the ICO. The review process took several months due to the immature nature of the crypto market and its regulation standards.

After reviewing the MetaHash description of business model and network’s components, FINMA has identified the MHC coin as a utility token which can also be used for payments within the MetaHash network.

“If at first the government authorities were wary of FinTech and cryptocurrencies which led to point-like prohibitive regulation in different countries, recently there are more and more opportunities for positive interaction,” said Anton Agranovsky, co-founder of MetaHash. “Since the very start our strategic approach was based on heavy focus on legal compliance and launching the functioning network first to fit official regulations, and now we are proud that this long path has resulted in getting FINMA’s conclusion. Big deal for #MetaHash, but also for the whole industry.”

MetaHash is a decentralized real-time application platform and blockchain based on the MultiPOS principle (Multivote Proof of Stake). The MHC token can be used for data storage, powering DApps, and having those DApps listed on MetaGate directories.

Last month, MetaHash opened its mainnet and started distributing MHC tokens prior to its forging initiatives in August. MHC owners will become the first nodes contributing into the network’s growth and will enjoy the full advantages of the early forging.