PROJECT DEVELOPMENT HIGHLIGHTS

FINANCE

From a financial point of view we are alive and well, we have invested wisely and make decisions that are very cost effective. We hold dear and respect the support of our community of CHSB holders, our philosophy is and will continue to be: spend money in an optimal way, as Benjamin Franklin said, “beware of little expenses; a small leak will sink a great ship.”

In our aim to spend only where SwissBorg needs it the most, service provider agreements are always compared and negotiated beforehand. We always aim to link compensation of service providers to results. We travel in economy class in planes, 2nd class in trains, non expensive hotels, meals or unnecessary expenses/perks.

The crypto market has fallen by approximately 55 % since the SwissBorg ICO closed while our assets currently stand at $33m (down by only 34% since the ICO and after all the expenses incurred) thanks in part to our hedging strategies.

LEGAL

Our legal team, headed by Line Elodie Derungs, is active on all fronts :

Applying for a self-regulatory organization (or SRO) membership in Switzerland;

Reaching out to the best regulatory experts in jurisdictions such as LIE, UK and Malta, amongst others, to help construct an optimal and compliant framework where SwissBorg is expanding its global activities; and are, most importantly,

Tackling the regulatory challenges and the set-up of the applicable licenses for fiat deposit as well as trading and portfolio management activities that will be essential in the context of the upcoming launch of the SwissBorg Investment App.

SwissBorg_Switzerland_Application for SRO membership

As SwissBorg will be active in the field of financial advisory, it is obliged, according to Swiss law, to be a SRO member in order to meet its duties of due diligence in respect to combating money laundering (AML). In this context, Line Elodie’s team is currently in the process of applying for a SRO membership, according to the following steps :

Collection of all the required information to build SwissBorg’s file;

Writing the required internal policies;

After a first analysis of our case, the SRO will have a meeting with SwissBorg’s management team and an initial audit of the company’s activities will also be performed;

We will then receive our membership.

SwissBorg_Compliance with European Law

On the European front, the legal team is analyzing all the applicable legislation to make sure any activity of the SwissBorg Group is done in the most efficient and compliant way possible.

The first priority in this area is the implementation of the General Data Protection Regulation (or GDPR) on May 25, 2018. For this, SwissBorg recruited an expert to give a specialized workshop to the heads of all departments and ensure that this regulation about the modalities of processing and protection of all the personal data of our community members would prioritized.

The legal and corporate governance teams have then analysed how to implement the best data flows possible within the SwissBorg Group as well as in the connection with external service providers, in order to protect the key interests of our whole community.

An additional key thread that will be running through SwissBorg’s future activity is the implementation of other applicable European regulations and directives such as the second Markets in Financial Instruments Directive (MiFID II), the second Payment Services Directive (PSD2) etc.

Even though these rules will only be applicable once the Investment App is operational, Line Elodie Desrungs’ team is working hard on researching all aspects of this multifaceted project because we are adamant about ensuring that as little time as possible is lost with the necessary legal set-up once the Investment App is “launch-ready”.

Investment App_Fiat deposit, trading and portfolio management activities

Fiat deposits activities are strongly regulated in Switzerland and in Europe. As this is the key feature of the Investment App, Line Elodie’s team is currently in contact with the best experts in the field, from Switzerland and abroad, with the aim of having the best appreciation possible of the criteria that apply to SwissBorg’s specific case. Once this analysis will be finalized, a global legal policy will be set out and discussed with the IT department in order to best correlate the demands of both worlds. The legal team will also simultaneously carry on its dialog with the competent authorities for defining what exactly is the best approach to apply for all the needed licenses and grant the SwissBorg Group the legitimacy it always aimed for in the most timely manner.

BUSINESS INTELLIGENCE

First Referendum

Our first Referendum was held in April and went very smoothly. Most of the participants, 68.2%, voted via a token-transfer directly on the blockchain. While 31.8% voted using our Referendum website.The geographic distribution of the votes was also very interesting but not surprising. Our Japanese community ranked first among participants who voted in the Referendum followed by those in Switzerland and the UK.

On the referendum financial metrics: we are proud to announce that we have distributed 3.3 millions CHSB for our 1st Referendum. 4240 community members voted representing 51.54% of the allocated tokens.