In what is a first for Switzerland, Crypto Fund, a subsidiary of Crypto Finance AG, recently obtained a cryptocurrency asset management from the country’s Financial Market Supervisory Authority (FINMA). The company becomes the first to be authorized to provide full spectrum services to institutional investors regarding blockchain-based assets.
FINMA Grants Crypto Fund Full Cryptocurrency Asset Management License
According to Bloomberg, the license puts Crypto Finance AG in the same bracket as other non-cryptocurrency asset management firms in the country. Commenting on the development, company CEO, Jan Brzezek, said:
The importance of crypto assets is growing, and our aim is to accelerate maturity in these markets. FINMA authorization is an important acknowledgment of the Crypto Fund and for crypto assets around the world.
FINMA initially gave Crypto Finance AG limited authorization earlier in the year to function as a cryptocurrency asset management firm. With this license upgrade, the Zug-headquartered company is now free to issue investment products that track cryptocurrencies and even provide investment advisory services to its customers.
This license upgrade will also enable the company to steal a march on its rivals as the competition in the burgeoning cryptocurrency scene in Switzerland becomes fiercer. Apart from Crypto Fund, there are many other firms in the country knocking on FINMA’s door for different licenses that would enable them to offer their services.
Cementing Switzerland’s Place in the Emerging Cryptocurrency Narrative
For cryptocurrency enthusiasts in Switzerland, this news will come as a welcome development. Recently, some stakeholders raised alarms that the country risked losing cryptocurrency-based companies if the regulatory landscape didn’t improve.
Despite difficulties in obtaining valuable banking partnerships, the Swiss canton of Zug remains a popular destinations for virtual currency companies. However, significant developments in places like Malta and Liechtenstein could see a migration of these companies away from Switzerland.
Recently, a group of former UBS bankers announced the successful fundraising for SEBA Crypto AG in its bid to become the world’s first regulated cryptocurrency bank. According to Swissinfo, the startup hopes to secure FINMA license to allow its customers to trade digital currency.
SEBA also secured vital investments from Black River Asset Management and Hong Kong-based Summer Capital. With all these recent developments, the Zug Crypto Valley initiative seems well on its way to becoming a reality. Once that happens, Switzerland automatically becomes a major global hub for all things cryptocurrency and blockchain technology.
What do you think this development will mean for the burgeoning cryptocurrency and blockchain development hub in Switzerland? Let us know your thoughts in the comments section below.
Image courtesy of Crypto Finance AG, Shutterstock.