Switzerland’s financial markets regulators has opened the gate to the cryptocurrency investment for institutional participation in cryptocurrencies.
Crypto Finance AG subsidiary in Zug, Crypto Fund AG, has become the first company to get the “green light” from the Swiss Financial Market Supervisory Authority (FINMA) to provide a broad range of blockchain-based assets to institutional investors in the country. Crypto Fund was permitted a limited license early this year to spread out “offshore based cryptocurrency” funds to certified investors. However, the new license from FINMA gives authorities to the Fund to legally act as an asset manager who can provide investment advice and issue products that tracks bitcoin and cryptocurrencies including Swiss-based funds.
Jan Brzezek, the former UBS banker, established the Fund in 2017 following the country’s Collective Investment Schemes Act (CISA). He claimed that the importance of crypto assets should not be exaggerated. His own company is aiming to accelerate maturity in the market.
Mathias Maurer, the chief operating officer of Crypto Fund AG, stated that the authorization shows past 12 month-work and is a major “milestone”, thanks to the partners who devoted to ground-breaking authorization possible and to FINMA for a big support.
Switzerland is one of European countries with favourable laws toward crypto and it has continued to sustain the fame with a set of guidelines that focused on tokens which can be classified as securities and on how crypto companies can be active with ICO activities.
SEBA Crypto AG, another startup in Zug, is waiting for a banking and securities license from FINMA, in order to become a regulated crypto bank. Furthermore, Guido Buehler, a former UBS banker, added that he wants to help complete a “critical missing element of the currency ecosystem” while a lot of banks devoid to open accounts for cryptocurrency and blockchain transactions.
Author: Jieun Lee