Crypto Fund AG, a Swiss virtual currency fund startup, on Tuesday announced that it had received an asset management license from Financial Market Supervisory Authority (Finma). This license gives the company the green light to manage cryptocurrency investments in Switzerland as well as solicit for additional crypto-related investments from other parts of the world. In addition, Crypto Fund can now offer investment advice to corporate investors in Switzerland and abroad.
Crypto Fund Focused on Promoting Growth of Crypto Markets
While speaking to the press, the Chief Operating Offer, Mathias Maurer, stated that the authorization is a major milestone for the company and represents their determination and commitment to offer the best services to clients.
As noted by Bitcoin.com, the license will help the company to compete effectively with other globally recognized Swiss Fund managers. Mathias Maurer also pointed out that without this specific license that is issued under the Swiss Collective Investment Schemes Act, the operations of Crypto Fund AG would be limited and only subject to the stipulated money laundering laws.
Crypto Fund AG was founded in June 2017 as a subsidiary of Crypto Finance AG. This Zug based company focuses of promoting adoption of blockchain technology through provision of services such as brokerage and asset management. Crypto Finance AG connects investors with businesses that seek to leverage the blockchain technology.
Overview of Cryptocurrency Industry in Switzerland
Switzerland government stance to legalize and formalize cryptocurrency transactions has greatly helped to promote growth of the industry in the country. However, some crypto projects still find it difficult to register and open bank accounts. Regulatory is still not clear and so most people are unaware of the regulations put in place by the government.
The country seems to follow in the footsteps of other countries such as Cayman Islands, Isle of Man, Mauritius, and Gibraltar to embrace digital currencies such as bitcoin cash and bitcoin core despite the fact that other governments skeptical perception about digital coins being speculative, opaque, and volatile.
Uncertainty about implementation and policing of ICOs (initial coin offerings) in the national financial market made most Swiss banks cautious and reluctant to offer bank accounts to the companies. This led to at least two major ICO companies jumping ship and setting up offices in other countries whose regulations support their operations. Luckily, most of the Swiss banks have started to embrace the technology and are opening up. For example, Maerki Baumann, 86-year old private bank, now accepts crypto assets.
Cryptocurrency related business provides employment to thousands of people in Switzerland. The government views blockchain technology and virtual money as a strategic innovation in the finance industry and is focused on not only maintaining the current trend but also increasing the number of jobs that the industry offers. At the moment, Switzerland’s tax regulatory authority categorizes digital currencies such as bitcoin cash as assets that are subject to be declared on annual tax wealth tax returns. Crypto Fund AG will definitely have a major positive impact on the cryptocurrency industry in Switzerland.