Swiss Regulator Allows Crypto Fund AG to Offer Blockchain Assets to Institutional Investors
In a recent move, the Swiss Financial Market Supervisory Authority (FINMA) has given a thumbs-up to Crypto Finance AG subsidiary Crypto Fund AG to offer a broad array of blockchain-based assets to institutional investors in the country. This reflects the Swiss government’s resolve to boost the promising crypto industry in the country through institutional participation and investments.
Crypto Fund, the monetary arm of Crypto Finance AG was established in 2017, by former UBS banker Jan Brzezek under Switzerland’s Collective Investment Schemes Act (CISA). The Zug-based company eases the application of services associated with blockchain technology such as asset management, brokerage, building bridges between investors and industries, etc.
Earlier this year, Crypto Fund was granted a limited license to distribute ‘offshore based cryptocurrency’ funds to qualified investors. However, this new license from FINMA empowers the Fund to legally act as an asset manager offering investment advice along with investment products that track bitcoin and other cryptocurrencies, including Swiss-based funds.
Commenting on the development, Brzezek stated that the importance of crypto assets should not be exaggerated and that his company’s objective is to ‘accelerate maturity’ in the crypto market.
“Regulatory recognition remains highly sought after by participants, as seen in recent press and company statements.”
Mathias Maurer, the chief operating officer of Crypto Fund AG, added:
“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.”
As the cryptocurrency market expands, the attitudes towards it have led governments to take action on its regulation. A few countries have already procured or have begun the process of obtaining legal status of cryptocurrencies. Interestingly, Switzerland is the highest ranking pro-crypto country. As per a report by PricewaterhouseCoopers, many big ICOs were generated in Switzerland in 2017.
Zug, christened as the ‘Crypto Valley,’ is home to major crypto companies like The Ethereum Foundation, a blockchain company, as well as Cardano, a wallet company. With around 400 crypto businesses, Zug is one of the friendliest countries regarding cryptocurrency.
