Bitcoin startup received FINMA approval to operate in Switzerland

8 years ago - Published in Finance, Fintech Land, Technical Analysis

Bitcoin startup Xapo has revealed that it has gained an early ‘conditional approval’ from Switzerland’s financial regulator (FINMA) to operate in the country.

The Switzerland-based company said in a new blog post that it has been given “conditional approval” from the Swiss Financial Market Supervisory Authority (FINMA) to do business in the European country.

CEO Wences Casares wrote in a blog: "We are happy to announce that, after almost two years of substantial effort and investment, Xapo has received conditional approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate in Switzerland".

Having launched in early 2014 with the promise to be the most secure way to store bitcoins, Xapo quickly attracted US$40 million in funding, a record amount for a bitcoin company at the time.

The company initially courted institutional clients, offering them the first organization-level management tools for bitcoin. 

The two-year process was down to product development rather than obstacles due to bureaucracy. “[W]hen obstacles arose, FINMA invariably suggested solutions. We immediately accepted their suggestions when we could and, in other cases, modified or developed products to meet regulatory requirements,” Casares revealed.

Pointedly, he added: "Many regulatory bodies in similar situations would have rejected Xapo (and Bitcoin) entirely. By choosing to persevere, however, we believe FINMA has positioned Switzerland as a hub for fintech innovation and ensured Switzerland’s primacy in global financial services for decades to come".

While Casares said that the regulatory environment for Bitcoin in Switzerland was, “very advanced, perhaps the best in the world" in 2015, when Xapo employees finally arrive in Zug, they are sure to find an environment for Bitcoin unlike any other on Earth.

Switzerland has seen a number of notable developments in the bitcoin space in recent times. For instance, the operator of Switzerland’s national railway service began selling bitcoin via its ticket kiosks in a two-year pilot project. Over a thousand ticketing machines are now accepting fiat Swiss francs in cash or by debit card in exchange for bitcoin. The pro-innovation and technology environment in the country has also led to “Big Four” firm Ernst & Young Switzerland to accept bitcoin as payment for its services.