Switzerland Approves Its First Crypto Fund

Switzerland Approves Its First Crypto Fund


2021-09-29 22:35:08

Although the market has been under a lot of pressure from China and the US recently, the situation in Europe is a completely opposite story. The fund, which invests mainly in cryptocurrencies, has been approved by the Swiss financial regulator for the first time in the country.

Switzerland Approves Its First Crypto Fund

Specifically, the Swiss Financial Market Supervisory Authority (FINMA) has given the green light to the Crypto Index Fund to become the first crypto-oriented investment vehicle operating in the country with a regulatory standard license. on a legal basis.

– See more: Europe is the world’s largest crypto economy with over $1 billion in transactions

According to the report, the Crypto Index Fund will only be available to qualified investors. Switzerland’s financial watchdog said the new product would fall under the category of “alternative investments”, which are generally associated with higher risks.

Regarding those potential risks, FINMA explained that the approval was given after considering the specific requirements. Includes the addition of certain assets to the fund, having a sufficiently large trading volume.

To facilitate serious innovation, FINMA applies the applicable provisions of financial market law in a way that is consistent with technology neutrality.

FINMA also added that only established partners and platforms within the fund’s jurisdiction can process investments. Switzerland is one of the leading countries in terms of cryptocurrency adoption. The country’s regulator has approved a number of similar digital asset-oriented products over the past few years.

In particular, companies like 21Shares and CoinShares have launched many exchange-traded products on the SIX exchange. Last year, the Swiss canton of Zug allowed locals to pay taxes in Bitcoin and Ethereum.

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