The first fund to invest in crypto was officially approved by the Swiss supervisory authority FINMA as we read more about the fund in our latest crypto news today.
The Swiss Financial Market Supervisory Authority FINMA Switzerland has given the Cryptocurrency Market Index Fund the green light as the first crypto investment vehicle with the appropriate license. As reported by Reuters, the Cryptocurrency Market Index Fund is only available to qualified investors. The Swiss financial regulator said it falls into the “other funds or alternative investments” category, which are higher risk.
With regard to these risks, FINMA explained that the approval was granted after considering specific requirements and included the inclusion of assets in the fund with a larger trading volume. The statement reads:
“In order to enable serious innovations, FINMA applies the applicable provisions of financial market law consistently in a technology-neutral manner.”
The organization added that only incumbent partners and foundations within the scope of the regulation can process the investments. The EU country is a leader in adopting cryptocurrencies, and its regulator has approved a number of similar digital asset-focused products over the years. Companies like Coinshaares and 21Shares launched several exchange-traded products on the SIX Exchange, while the Swiss canton of Zug allowed locals to pay taxes in BTC and ETH last year.
As recently reported, the Swiss Financial Market Supervisory Authority FINMA will oblige local providers of digital assets to comply with new regulations and prevent criminals from using cryptocurrencies. The regulator also turned to BTC ATMs, believing that drug traffickers use these machines a lot. According to reports, Switzerland sees the imposition of AML rules that monitor local cryptocurrency providers as an attempt to prevent any illegal money laundering. Swiss platforms and brokers dealing with digital scams need to step up their surveillance efforts and see if the bad guys are using cryptocurrencies. The watchdog considers this measure necessary and points out that criminals use the asset class to finance acts of terrorism. FINMA also turned its attention to BTC ATMs, and according to the regulatory authority, drug dealers use these ATMs as payment systems. It is noteworthy that Switzerland is a relatively small country, but has 130 ATMs and ranks sixth in the world in relation to the countries with the most countries.
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