A new development from Switzerland has brought a large change for the crypto world, as the country’s finance regulator allowed the first crypto asset manager. The move was greeted with a lot of positivity, as it indicates that digital assets are moving one step closer to traditional finance. Thanks to the new license, Crypto Fund can now officially offer its services to institutional investors.
The new announcement came today, October 9th. It makes Crypto Finance AG’s subsidiary, Crypto Fund, equal to other fund managers, at least within Switzerland. However, it also allows it to pitch for business outside of Switzerland as well.
This is a big move for the company, but also for Switzerland itself, as it brings it one big step closer to becoming a leader in the digital cryptocurrencies industry. With the new license, Crypto Fund can distribute and manage domestic and foreign funds, and can even provide official advice to their investors.
Jan Brzezek, Crypto Fund’s CEO, stated that recognition and importance of crypto assets continue to grow and mature. Because of this, it was important for Swiss Financial Market Supervisory Authority (FINMA) to authorize Crypto Fund’s activities, and acknowledge the firm.
Crypto experts agree that this move will mean a significant breakthrough when it comes to Switzerland’s position on the crypto scene. Both startups, as well as established crypto firms, will likely rush towards the country that now represents a bridge between crypto and traditional finances. Brzezek addressed this as well, stating that this is a key step for clients and investors. Furthermore, he sees the license as an official acknowledgment for crypto assets.
This is very important for the crypto space, as regulators all around the world are constantly pursuing startup companies for non-compliance with very strict and specific regulation. Companies in the US and EU have been seeking a properly regulated space where their businesses could flourish for a long time. Now, it would seem that Switzerland may fulfill their needs.
One thing to note is that the fund arm managed to win a fund license as far back as in June 2018. Since then, backers even announced the launch of a startup called Seba, which is trying to become the first officially licensed cryptocurrency bank. While Seba already managed to raise around $100 million, it is not expected to land a bank license before summer 2019.
Even so, it seems that Switzerland’s stance towards cryptocurrencies will remain welcoming. While this is a big move for Switzerland, the country is still not without competition, as Lichtenstein grew to become a serious rival in the race to attract crypto firms.
Still, the situation in Switzerland seems to be developing rather well. Especially since its banks are slowly but surely starting to open up to cryptocurrencies as well. The best example of this is a private bank going by the name of Maerki Baumann, which has started accepting crypto assets a few months earlier.