Swiss Market Regulator Allows Crypto for Institutional Investors

Oct 12, 2018 at 21:23

Switzerland has once again proven its openness to unconventional monetary rules as its financial markets regulator allowed the use of cryptocurrencies for institutional investors.

The Swiss Financial Market Supervisory Authority (FINMA) approved Crypto Finance AG to become the first company to offer various blockchain-based assets to institutional investors in the country.

The new license will allow Crypto Finance to legally act as an asset manager that can offer investment advice and issue different investment products that can trace Bitcoin and other cryptocurrencies as well as Swiss-based funds. Earlier this year, the firm was already granted a limited license to distribute offshore based cryptocurrency funds to qualified investors.

“The authorization represents our professional work over the last 12 months and is a major milestone for us. Our thanks go, above all, to our partners who made this ground-breaking authorization possible and to FINMA for the good cooperation,” Mathias Maurer, Crypto Fund’s chief operating officer, said in a statement.

Switzerland is famous for its favorable crypto laws especially guidelines on tokens that would be classified as securities as well as for definite rules on how crypto companies can be compliant while carrying out initial coin offerings.

Last month, the country also raised 100 million Swiss francs equivalent to $103 million, to put up a cryptocurrency bank and integrate it with traditional financing.

The bank called SEBA Crypto AG will offer not only traditional banking services but also cryptocurrency services and will be led by former UBS managers Guido Buehler as chief executive and Andreas Amschwand as chairman.

The full story can be read here.