Switzerland has made another strong decision indicating its unreserved support for the crypto sector. The Swiss financial regulator FINMA has issued a license to Crypto Finance AG which grants it privileges as professional fund managers to a Zug-based startup.
Future of Crypto Finance
With the issuance of this license, Crypto Finance AG becomes a legitimate asset manager of collective investment schemes. The firm would now be able to expand its investment products to Bitcoin as well as other virtual tokens making it capable of advising institutional clients interested in crypto assets, according to Bloomberg.
The CEO of Crypto Finance AG, Jan Brzezek in a statement on Tuesday revealed that; “The importance of crypto assets is growing and our aim is to accelerate maturity in these markets,” he also stated that the effect of this approval goes beyond an ordinary approval as it further projects crypto to the world.
Development of Crypto Bank
Apparently, the issuance of a license to Crypto Finance AG is undoubtedly the first of its kind but would definitely not be the last as there are other startups on this queue expecting approval as well. For instance; Seba Crypto AG, a startup which has successfully raised well above $100 million from both institutional and private investors, has shown interest to regulate crypto bank.
The Zug-based startup led by former managers of USB namely; Guido Buehler and Andreas Amschwand, are now pressing to get a license from the Swiss financial regulators in order to offer traditional and crypto banking services to customers legally. There is no doubt that without this permit, nothing can be done, and it leaves investors without technical guidance on ICOs (Initial Coin Offerings) and other instances where such services are needed.
Switzerland’s Crypto-friendly Stance Paying Off?
The question of whether or not the crypto-friendly policy of Switzerland is paying off can be answered in the affirmative, as it has made the country a leading crypto hub in the globe. Recently the Swiss Bankers Association (SBA) issued new sets of guidelines which largely indicates more support to startups using blockchain technology.
The new regulation issued out in September by SBA was aimed at leveling the traditional banks’ legal framework to reduce the risk while promoting an enabling environment for the growth of blockchain startups. According to the guidelines, it can be deduced that any blockchain-related project without conducting an Initial Coin Offering (ICO) should be classified as Small Medium Enterprises (SMEs).
Switzerland’s contribution to cryptocurrency and blockchain-based startups has been immense over the years and it is no surprise that it is gradually becoming the “Silicon Valley” of the crypto world owing to its enabling environment, this move has paid off and it is exemplary.