Crypto Fund AG, which is an emerging Swiss virtual currency, said this Tuesday that it was given an asset management license by the Finma or Financial Market Supervisory Authority. The license permits the company to manage crypto-related investments within Switzerland, as well as to solicit for others around the world. Crypto Fund is going to be authorized to provide investment advice to corporate investors.
Crypto Fund will accelerate ‘maturity’ in crypto markets
The chief operating officer of Crypto Fund, named Mathias Maurer said that the authorization represents their professional work over the last year and it is also a significant milestone for them. He also said that the license put the company on the same playing field with some other globally approved and regulated Swiss fund managers.
Without this license, which was issued under the Swiss Collective Investment Schemes Act, activities of crypto firms in Switzerland are going to be limited and just subject to fulfilling compliance with money laundering, as Maurer noted.
Crypto Fund was found in June last year, and it is the financial hand of Crypto Finance AG. The Zug-based company promotes the implementation of blockchain technology through some services like asset management and brokerage, as well as building bridges between investors and businesses which seek to use the technology.
The Alpine country took a progressive stance towards cryptocurrency, legalizing its use, as well as formalizing crypto transactions in different contexts. However, some crypto projects are still finding it difficult to open bank accounts, together with regulatory clarity to crypto-focused bankers and investors, which is still not clear as it has to be.
In June of this year, Finma gave a license to Crypto Finance to distribute collective investment schemes, as well as funds to the qualifying investors. The chief executive officer of Crypto Finance, named Jan Brzezek said that the significance of crypto assets is growing in their purpose is to accelerate maturity in those markets.
He also noted that the license was quite significant for building confidence for crypto assets worldwide. Now, he is looking to seek approval for a passive investment fund shortly.
The country continues expanding crypto space
Together with some other countries, such as Gibraltar, Isle of Man, Cayman Islands, as well as Mauritius, Switzerland welcomed cryptocurrencies such as Bitcoin Core and Bitcoin Cash, going against some other skeptical view of the governments on digital coins as being opaque, volatile, as well as speculative.
What made them cautious was the uncertainty by legacy Swiss banks on the policing and implementation of ICOs in the financial market. This also made them reluctant to issue participants in the nascent market with company accounts, leading to the departure of at least two significant players this year. But, the banks have started to open up. The 86-year-old private bank Maerki Baumann is another one that now accepts crypto assets.
The financial regulators of Switzerland, as now are facing with competition from crypto-affirming rivals such as Liechtenstein, Gibraltar, as well as the Cayman Islands, whose banks are more welcoming, got to work with lawmakers this year, to give clarity on the policing of the ICO market. The Crypto Fund license is also the latest high-profile effort for building seamless synergies in the area.
Crypto-related businesses employ hundreds of people in the country
Some crypto-related businesses employ hundreds of people in Switzerland, with the crypto legal tender in several contexts. The country sees virtual money and blockchain as a strategic innovation in global finance, and it has the intention to maintain and grow the jobs it has to offer in this field. The tax regulatory authority of Switzerland considered cryptocurrencies to be assets, subject to wealth tax, as well as declared on annual tax returns.
According to some reports, the city Zug, which is also known as the Crypto Valley, ranks favorably among the most crypto-friendly towns in the world, and it boasts more than 400 crypto businesses. Four of the ten biggest ICOs from last year were registered in Switzerland, more significant than any other country.