Switzerland Greenlights Its First Crypto Assets Fund
Reuters has reported that Swiss financial watchdog FINMA (Financial Market Supervisory Authority) has greenlighted the first investment fund that will be dealing mainly with digital assets.
Swiss markets watchdog approves first crypto assets fund https://t.co/y6sZMxY5yc pic.twitter.com/5D7sXAE4ce— Reuters (@Reuters) September 29, 2021
The FINMA warns that the new fund – the Crypto Market Index Fund – is only open to qualified investors and goes under the category of alternative investment funds, therefore bearing certain risks for customers.
The regulator’s statement also says that this approval has been made “in order to facilitate serious innovation” and emphasizes that nascent technologies will not be used for breaking the existing rules of the financial market.
Besides, to minimize the risks, the fund will be only allowed to invest in already established cryptocurrencies with a large enough trading volume - Bitcoin, Ethereum, etc. On top of that, investments will be allowed to make only via platforms located in a country that is in the jurisdiction of the FATF (Financial Action Task Force), and thus complies with anti-money laundering regulations.Source