Switzerland has approved its first cryptocurrency fund. This was announced today by the Swiss Financial Market Supervisory Authority (FINMA). This means that the Crypto Market Index Fund is officially approved and recognized by the law. The Crypto Market Index Fund just approved will allow qualified investors to invest in the cryptocurrency assets they want.
The Financial Market Supervisory Authority (FINMA) has however said that the Crypto Market Index Fund will be under the category of ‘alternative investment fund’s and hence will only be available to qualified investors. FINMA also noted that investing in the cryptocurrency fund carries risk for investors.
This announcement coming from the Financial Market Supervisory Authority (FINMA) is positive news for the cryptocurrency industry. It’s good news for the cryptocurrency market which has had a drop in price of crypto following the recent ban of cryptocurrency transactions and mining in China.
Switzerland and Cryptocurrency
Switzerland is currently one of the most attractive countries for cryptocurrency companies around the world. This news will make the country a more attractive destination for cryptocurrency firms. This year, Exchange-Traded Products (ETP) was launched on the Swiss Stock Exchange.
Switzerland has been one of the countries embracing cryptocurrency, as the country has some of the top cryptocurrency asset management firms in the world. Earlier this month, FINMA approved SIX, Switzerland stock exchange to launch its digital exchange for digital assets. SIX was given two licenses by FINMA, licenses for stock exchange and for central securities’ depository. Once the new digital exchange is operational, SIX plans to offer stock and bonds to investors in the form of digital token.
This was a huge milestone for cryptocurrency, as SIX seeks to digitalize the financial market. SIX has been working on digital exchange for over 3 years, with a goal of creating a global network of digital assets trading. Over 80,000 merchants in Switzerland accept cryptocurrency as payment from customers. Also, SEBA Bank was approved by the Financial Market Supervisory Authority and hence given license to function as a custodian bank that offers digital assets to mutual funds.
Legal Status of Cryptocurrency
The actions of Switzerland to support cryptocurrency is admirable, and this is in contrast to China who recently announced the ban of cryptocurrency transactions and mining via its Central Bank. China joins the list of countries to have officially banned cryptocurrency including countries like Egypt, Bolivia, Indonesia and Turkey. There are other countries that support cryptocurrency like El Salvador who recently legalized cryptocurrency and adopted bitcoin as a legal tender within the country.