Crypto Fund AG, a Swiss-based virtual cash fund said the FINMA (Financial Markets Supervisory Authority) has granted it an asset management license. The license allows the company to manage investments related to cryptocurrency in Switzerland and endeavor others as well. Crypto Fund is also authorized to provide investment advice to companies.
“The authorization corresponds to our professional work in the last 12 Months and stands for a critical milestone for us,” said a chief operating officer of the Crypto Fund, Mathias Maurer, in a statement. “This license puts the company on an equal footing with other regulated and recognized Swiss fund managers around the world,” he added.
Without the license, issued under the Swiss Collective Investment Schemes Act, the activities of crypto companies in the Alpine region will be limited and will be subject to money laundering compliance,” Maurer said.
The Crypto Fund was founded in June 2017 and is the financial division of Crypto Finance AG. The company based in Zug enables the execution of blockchain technology through services such as asset management and brokerage, creating connections between investors and companies that wish to use the technology.
Switzerland has adopted a progressive stance in favor of cryptocurrency, legalizing its use and formalizing cryptocurrency transactions in different contexts. However, some cryptocurrency projects are still struggling to open bank accounts and the clarity of regulation for bankers and investors with crypto is still not clear as it has to be.
In June, FINMA granted authorization to Crypto Finance to issue collective investment funds and proposals for qualified investors.
As per the reports, Zug which is also famous as Crypto Valley ranks at a significant position among the most favorable crypto cities around the world. This has motivated around 400 crypto businesses so far. In the ranking of top 10 largest ICO’s in the last year, four ICOs were registered in Switzerland.