Switzerland is fast making its mark in the crypto sector. In a move that clearly indicates the government’s decision to boost cryptocurrency investments, Switzerland’s financial markets regulator has opened the floodgates for more institutional investors.
Embracing Bitcoin And Innovation
Per a Wednesday announcement, the Swiss Financial Market Supervisory Authority (FINMA) approved the Crypto Market Index Fund that invests chiefly in cryptocurrencies. Notably, this will be the “first crypto fund according to Swiss law”.
The new fund will be classified as an alternative investment fund because it bears some risks to investors. Additionally, it will only be available to qualified investors. Due to these risks, the regulator stated that the Crypto Market Index Fund can only invest in established crypto assets that have considerable trading volumes.
Moreover, all investments will be allowed through reputable platforms domiciled in a country within the purview of the Financial Action Task Force and are thus compliant with anti-money laundering laws.
FINMA’s official statement also notes that the approval of the fund is in line with the regulator’s intent to promote “serious innovation” in the country while stressing that burgeoning technologies will not be used to evade the financial market existing laws.
In addition to the fund approval, Swiss-based crypto bank SEBA Bank AG has become the first company to get the green light from FINMA to offer digital assets to mutual funds. SEBA Bank was granted a CISA license, the first of its kind in the country, which will allow the company to act as an institutional-grade custody provider.
SEBA Bank CEO Guido Buehler commented on the latest achievement:
“With our new CISA license, the SEBA Bank continues its pioneering role in the institutional digital asset space. Asset Managers can now offer strategies based on crypto or other digital asset underlyings to a broader audience utilizing Swiss-based mutual fund structures secured by SEBA Bank as the CISA-licensed custodian.”
Switzerland Setting The Pace
Switzerland has remained popular in blockchain development and cryptocurrency adoption due to its favorable crypto regulations. The nation has continued to blaze the trail with a set of guidelines and licenses issued by its regulators. In fact, the iconic lakeside Swiss town of Zug has been referred to as the ‘Crypto Valley’ because it is a fintech-friendly area.
These regulatory strides are unlikely to directly impact other jurisdictions but will possibly have an influence on how regulation is created everywhere else. Only time will tell how these regulations impact innovation.