The FYZ Coin
The Fyooz Coin (FYZ) enables trading on the Fyooz Marketplace. Fyooz Coins are needed to buy and sell Star Tokens. It’s the platforms’ currency. It’s a digital information unit (token) that is generated from a smart contract deployment on the Ethereum blockchain. The FYZ coin enables holders of FYZ to buy and sell issued Star Tokens on the Fyooz platform. It will become the first Popular Culture Coin. A Coin whose value most people understand (unlike the vast majority of Altcoins).
Based on FINMA’s guidance, the Fyooz Coin is classified as both a Payment Token and a Utility Token.
Classification as a Payment Token means that, from FINMA’s point of view, the sale of the Fyooz Coin is issued as a means of payment and subject to Anti-Money Laundering Act (“AMLA”) guidelines.
Our advisors MME Legal Ltd has furthermore examined how the Fyooz Coin is to be classified under the guidelines for enquiries regarding the regulatory framework for Initial Coin Offering, published by the Swiss Financial Market Supervisory Authority (“FINMA”). MME states the Fyooz Coin is to be classified as a hybrid Utility and Payment Token within the meaning of the regulatory framework and as a means of payment pursuant to the AMLA. Since the sale of Fyooz Coin during the Private Sale and via the Fyooz Payment Widget is subject to the AMLA, Urknall AG is required to fulfill the requirements of the AMLA prior to the issuance of Fyooz Coins and to affiliate itself with a SRO to ensure that the AML due-diligence requirements are met.
Due to FINMA’s extensive interpretation of the term Asset Tokens, we assume that FINMA will classify the Fyooz Coin as an Asset Token and treat it as a security until it can be used as a means of payment on the platform. Since FINMA has no direct responsibility for the issuance of securities, this temporary treatment of the Fyooz Coin as a security does not constitute a reason to contact FINMA prior to the issuance of the Fyooz Coin. MME further believes that the Fyooz Wallet, the Star Token Generator (TOKOMAT) and the Fyooz Exchange are not subject to the Swiss financial market laws. MME conclude therefore that the operation of Fyooz does not require regulatory approval or oversight.
Purchase of Fyooz Coins
The coins can be purchased in two different ways:
- During private sale directly from Urknall AG. You won’t be able buy the FYZ over the Tokomat or in the app.
- Via a third-party exchange, after listing.
Once a user has purchased Fyooz Coins, they can buy the Star Tokens of their choice on the Fyooz Marketplace and then sell the Star Tokens to other users if desired.
☝️Users can buy Star Tokens directly from the Tokomat at any time. If they want to sell Star Tokens, they can do so against FYZ Coins. On the Fyooz Exchange the trading pair is always Star Token against FYZ.
Whenever Fyooz Coins are sold, Urknall AG will ensure that the following requirements are met:
- Acceptance of “Fyooz Terms and Conditions”
- The user must undergo a pre-defined onboarding process to ensure the applicable due diligence requirements under the Swiss Anti-Money Laundering Act (“AMLA”) and the regulations of the supervising SRO VQF are met.
An owner of Fyooz Coins can either use them to purchase Star Tokens on the Fyooz Exchange or sell them on a secondary market exchange.
Why do we need a Fyooz Coin?
On the one hand, the Fyooz Coin must be introduced for regulatory reasons. The Fyooz Coin will be a regulated payment token that meets KYC/AML requirements and is counterbalanced by Fiat and other cryptocurrencies as trading objects. Fyooz Coins can, therefore, be sold in many jurisdictions around of the world. It is only in this setting that it is possible to create and sell Star Tokens – which are regarded as Utility Tokens (→ see: Utility Tokens) – and subsequently make them tradable on the Fyooz marketplace.
Secondly, the Fyooz Coin delivers critical liquidity for the Fyooz marketplace, as it will take time for network effect to kick-in. The network effect is a direct function of two things – first, a threshold population on both sides of the marketplace and second, the number of successful transactions.