With its authorities supportive of its crypto sector, Switzerland is inching closer to its goal of becoming a major cryptocurrency hub. Recently, the nation’s financial regulator just granted its first crypto asset management license to a Zug-based start-up, which allows it to offer blockchain-based assets even to institutional investors.
FINMA Upgrades Crypto Fund’s License
Crypto Fund AG, the asset management arm of the Zug-based Crypto Finance AG, was granted the first crypto asset management license in Switzerland, according to a report by swissinfo.ch. The company’s license was issued on Tuesday, Oct. 9, by the Swiss Financial Market Supervisory Authority (FINMA).
Crypto Fund was previously granted a limited license to distribute offshore-based crypto funds early this year. With this upgrade, however, the company can now offer a wider selection of crypto-focused investment products to its clientele.
According to Bloomberg, Crypto Finance gets the same license as professional fund managers. This means that as a recognized asset manager of collective investment schemes, the company can now provide financial advice to its clients, as well as distribute and manage both domestic and foreign crypto funds.
Chief Executive Officer Jan Brzezek was ecstatic with the development and said in a statement:
“The importance of crypto assets is growing and our aim is to accelerate maturity in these markets. FINMA authorization is an important acknowledgment of Crypto Fund and for crypto assets around the world.”
Singapore, Hong Kong Expansion Eyed
Just days after FINMA awarded it an asset management license, Crypto Fund revealed big plans ahead. The company said it would use the approval as a platform for expanding overseas, which would likely happen in Asia.
Speaking to swissinfo.ch, CEO Jan Brzezek said:
“Before getting the license we were a start-up. Now we are a fully-fledged member of the regulated, established financial system. FINMA has exacting standards that are appreciated by other regulators around the world.”
The company is reported to be considering opportunities in Singapore, Hong Kong, and a few other crypto-friendly locations. However, there are no definite plans, and it will ultimately depend on which nation’s regulator is more welcoming to the company’s presence.