Cryptocurrency asset fund approved in Switzerland

Switzerland’s first cryptocurrency fund has been approved by the Swiss markets watchdog. It was the country’s financial markets supervisor who shared the news on Wednesday, Sept. 29.

According to Reuters, the Financial Market Supervisory Authority agreed to accept (FINMA) the Crypto Market Index Fund as the nation’s first crypto fund. This is a treasury that mainly invests in crypto or digital assets based on the blockchain.

Then again, FINMA noted in its announcement that the fund is restricted to qualified investors only, and it has been listed under the “other funds for alternative investments with certain risks” category.

The Swiss market regulator added, “In order to facilitate serious innovation, FINMA applies the existing provisions of financial market laws in a consistently technology-neutral way.”

Moreover, as there are risks in having crypto assets, FINMA is protecting the investors and the nation by making sure that these technologies will not be used to avoid existing laws. The body said that the approval is tied to specific requirements, such as the fund may only invest in recognized and prominent assets with a large trading volume.

Additionally, the investments must be made through established platforms and counterparties that are based in countries that are members of the Financial Action Task Force. The investments are also bound by related anti-money laundering regulations.

Apparently, the adoption of cryptocurrency in Switzerland is fast gaining momentum as the country’s financial regulators are starting to allow more crypto investment systems.

FX Street reported that the crypto fund was launched by Crypto Finance, a Swiss asset manager, and is managed by PvB Pernet von Ballmoos AG investment management company with the SEBA Bank AG acting as the custodian bank.

Finally, along with the fund approval, FINMA approved SEBA as an institutional-grade custodian service by giving it the Certified Information Systems Auditor (CISA) license. Prior to this development, the Swiss officials allowed SIX Swiss Exchange to open a digital marketplace and central securities depository built on blockchain.

“This collective investment scheme license allows institutional clients, and then later retail clients, to invest into crypto assets on a liquid basis through fund structures,” SEBA Bank chief executive officer, Guido Buehler, told CoinDesk in a separate interview.” It means there is now the opportunity for institutions to establish their fund structures for crypto as a liquid asset, so people can subscribe today and can sell tomorrow.”