Crypto Fund AG, a subsidiary of the Swiss Crypto Finance Group (CFG), has been granted a license to distribute funds on behalf of “qualified investors” in Switzerland, Reuters reported. According to an announcement by CFG, this is the first time a crypto business is granted such permission by the authorities in Switzerland.
The Swiss Financial Market Supervisory Authority (FINMA) confirmed the decision. However, the financial watchdog did not specify if this was in fact the first license of this kind.
According to another important clarification in the report, the permission does not mean the firm is allowed to operate as an asset manager for crypto funds. Nevertheless, the acquired license is a deliberate step, as confirmed by the company’s Chief Executive Officer, Jan Brzezek:
Getting the FINMA license is a big step in the right direction to establish us as the first point of contact for crypto assets.
In recent years, Switzerland has established itself as a crypto-friendly jurisdiction. The country has its “Crypto Valley” in the canton of Zug, where many crypto and blockchain businesses are either headquartered or represented there. The Alpine nation has been considering the possibility to issue a state-backed cryptocurrency, although its central bank has admitted through an official that private digital currencies are better than any state-issued coin.
It is not only the private fintech industry and financial sector are into cryptocurrencies and the underlying distributed ledger technology. The fully state-owned Swiss Federal Railways, for example, has been selling bitcoin to its passengers for almost two years at over 1,000 ticket vending machines. And the city of Zug, home of the Crypto Valley, is accepting payments in bitcoin and ether for municipal services, including company registrations.
HedgeCulture is a leader in blockchain news and a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. HedgeCulture is an independent operating subsidiary of HedgeCulture Group, which invests in cryptocurrencies and blockchain startups.