Switzerland’s FINMA Approves its First Cryptocurrency Investment Fund

#Ripple #XRP

The Swiss Financial Market Supervisory Authority (FINMA) has greenlighted the Crypto Market Index Fund to be the first cryptocurrency-oriented investment vehicle operating within the country with the proper licensing.

• According to the Reuters report from earlier on September 29th, the Crypto Market Index Fund will be available to qualified investors only.
• Switzerland’s financial watchdog said it will fall under the “other funds or alternative investments” category, which is typically associated with higher risks.
• In regards to those potential risks, FINMA explained that the approval has come after examining specific requirements. Those included the addition of certain assets in the fund, which have a sufficiently large trading volume.

• “In order to facilitate serious innovation, FINMA applies the existing provisions of financial market laws in a consistently technology-neutral way.” – reads the statement from the regulator.

• The institution also added that only established counterparties and platforms under its regulatory scope could process the investments.
• The European country is among the leaders in terms of cryptocurrency adoption. Its regulator has already approved several similar digital asset-oriented products in the past few years.
• Separately, companies like 21Shares and CoinShares have launched multiple exchange-traded products on the SIX Exchange.
• Last year, Switzerland’s Canton of Zug enabled locals to pay their taxes in Bitcoin and Ethereum.

Featured Image Courtesy of CapitalTrustees

OhNoRipple via https://www.ohnocrypto.com/ @Jordan Lyanchev, @Khareem Sudlow