According to a report from Swissinfo, the Swiss media outlet, the recipient of the asset management licence is Crypto Fund, a subsidiary founded by Crypto Finance, the Zug-based firm established in 2017. With the new licence in place, the firm can now legally offer a range of collective investment products that track both Bitcoin and other notable crypto assets that also include domestic funds:
Crypto Fund has scored a major coup in getting the first significant licence to date. The news also boosts Switzerland’s credentials as a so-called ‘Crypto Nation’ as it pushes to carve a niche in the rapidly evolving world of crypto finance. It remains to be seen whether this opens the floodgates for other licences to be issued.
Green light for institutional clients
The new licence also means the firm can offer investment consultancy services to institutional clients. This will basically mean that they will be enjoying the same freedoms usually offered to traditional Swiss asset managers. The report from Swissinfo also notes that there is an entire line of crypto funds in Switzerland waiting for approval on their various crypto-related products and services.
Financial green light
Just recently, a Swiss blockchain startup was given the green light to operate in the local financial market albeit under the watch of the Financial Services Standards association (VQF). Notably, the VQF is under the authority of FINMA to oversee compliance on matters anti-money laundering. The firm in question is also looking to gain a banking licence that will see it offer securities investments to clients in future.
Blockchain and crypto enthusiasts
Zug, also known in the crypto space as ‘crypto valley’ due to the high concentration in crypto-related projects in town, has partnered with various local companies in its bid to utilise a blockchain-based municipal voting system.
When it comes to matters cryptocurrency, Switzerland has been extremely active, particularly in the area of regulation. In fact, earlier this year in February, FINMA published a detailed guideline on ICOs.