Switzerland: Crypto Fund is the first to receive asset manager license

Switzerland finance authority FINMA has granted the first of country’s crypto asset management license that will allow the firm, Crypto Finance to operate like the traditional asset managers as the country consistently takes positive steps toward the rapidly evolving crypto world.

This authorisation as a fund manager firmly positions Crypto Fund AG alongside globally recognised Swiss fund managers. CEO and co-founder of parent company Crypto Finance AG, Jan Brzezek: “The FINMA authorization for Crypto Fund AG is a key step for our clients and investors, and for us in becoming a leading provider of digital asset services worldwide.”

The company that has been awarded the license from The Swiss Financial Market Supervisory Authority (FINMA) is headquartered in Zug. Set up in June 2017, Crypto Finance provides asset management, brokerage, and storage services.

The step to authorisation as an asset manager of collective investment schemes by FINMA raises the bar for crypto companies in Switzerland and abroad. Without such an authorisation, the activities of crypto companies are limited in Switzerland and are only subject to fulfilling compliance with money laundering regulations; however, this does not address prudential supervision over all activities or the organisation of the crypto company.

With this authorisation, the crypto asset playing field has shifted, as Jan Brzezek comments: “The importance of crypto assets is growing and our aim is to accelerate maturity in these markets. Regulatory recognition remains highly sought after by participants, as seen in recent press and company statements.” FINMA authorisation is an important acknowledgement of Crypto Fund AG and for crypto assets around the world, coming from a country inextricably linked to banking and financial service expertise.

Crypto Finance is also allowed to provide investment advice for institutional clients that means they can operate on the same level as that of the traditional asset managers in the country.

Many of similar crypto funds are working on getting the approval to offer services in Switzerland. A new firm, Seba Crypto has recently announced that it plans and hopes to get a license in order to offer full banking services for crypto operators in the coming time.

Switzerland has always been blockchain and crypto friendly and now the “Crypto Nation” is surely living up to its name with this license and constantly taking positive steps towards the rapidly evolving but still nascent crypto world.