Long recognised as an attractive domicile for businesses because of its friendly regulatory environment and transparency, Switzerland is cultivating the conditions for blockchain and cryptocurrency startups to thrive. One of these startups is Crypto Finance AG. Founded in June 2017, the financial technology holding company has obtained the same license as professional fund managers from Switzerland’s financial regulator, as the country pushes to maintain its financial industry leadership as cryptocurrencies gain more importance.
Crypto Finance AG Dives Into Swiss market
Obtaining this license has placed the tech startup in a pivotal position within the economic calculations of the Alpine country. The company is now recognized as an asset manager of collective investment schemes, meaning it can manage and distribute domestic and foreign funds and provide advice to investors.
In a statement on tuesday, Chief Executive Officer Jan Brzezek said:
FINMA authorization is an important acknowledgment of Crypto Fund and for crypto assets around the world.
He pointed out that this authorization allows startups like theirs to cater to a wider group of professional investors in the crypto currency market.
The Appeal of Zug, Switzerland’s “Crypto Valley”
Switzerland is attempting to embrace cryptocurrency by positioning the lakeside town of Zug – in a canton best known for low corporate tax rates – as “Crypto Valley,”the Swiss answer to Silicon Valley. Zug already has a substantial presence of blockchain and cryptocurrency businesses, and the country now wants to project its financial industry leadership position into the world of cryptocurrency using Zug as it staging point.
Speaking at a crypto finance conference for private and institutional investors which held recently in the Swiss Alps – the first of its kind held to be held – Swiss Economics Minister Johann Schneider-Ammann said that Switzerland wants to be the “crypto nation.”
The increased regulatory scrutiny that accompanied the huge rise in popularity of cryptocurrencies last year has led many crypto startups to go in search of jurisdictions with friendly regulatory frameworks, and Switzerland now seems to be positioning itself firmly in that space. Crypto Fund has said on its website that it is also seeking approval for a passive investment fund tracking an index of up to 10 of the largest and most liquid cryptocurrencies.
According to observers, a reason for Switzerland’s potential crypto success is its openness to business innovation. Speaking to the Financial Times earlier this year, Dr Martin Eckert, a Partner at Swiss law firm MME said
Swiss regulators are among the few that really have a deep understanding of the technology and how it works.