For a long time now, Switzerland has been a center for the wealth management industry of the entire world. Its banking has grown to be a large part of the economy, and the country itself is responsible for not only establishing the modern financial systems but for strengthening them as well.
However, another thing that makes Switzerland unique, and even crucial in the modern economy, is the fact that it embraces cryptocurrency and blockchain technology.
Crypto Finance AG Becomes the First Regulated Crypto Asset Manager in Switzerland
Recent reports from Zug, a small city known for its business-friendly policies, claim that one of its companies — Crypto Finance AG — managed to obtain the license for cryptocurrency asset managing. The license was issued by Switzerland’s financial regulator, and it will allow Crypto Finance AG to manage and distribute domestic and foreign funds alike. Additionally, it also has permission to act as an official advisor for investors.
Crypto Finance AG is only one of over 400 cryptocurrency and blockchain-based companies in Zug, which is home to Switzerland’s Crypto Valley. Even so, this recent development will be a big game-changer, especially since the importance of crypto assets is growing rapidly. According to the company’s CEO, Jan Brzezek, the FINMA authorization is important since it serves as an acknowledgment of Crypto Fund. It will make an effect on crypto assets across the globe.
By receiving the crypto asset management license, Crypto Finance AG effectively rose to the same level as non-crypto asset managing companies of Switzerland. This is an important step toward accelerating the maturity of cryptocurrency markets.
Earlier this year, FINMA provided this company with limited authorization, allowing it to serve as a crypto asset management firm. Now, however, the license received an upgrade that allows it to issue investment products that can track digital currencies.
Not only will this allow the company to take the next step on its journey to create a healthier ecosystem, but it will also help with outperforming its competition within Switzerland’s crypto scene. As a result of this move, many other companies in Switzerland are now asking FINMA for the same license.
Switzerland’s Crypto Valley Development Continues
This news represents a big development for Switzerland as well since it will ensure its place in the emerging digital currency narrative. The country’s investors and crypto enthusiasts welcomed the move, especially since the country was at risk of losing cryptocurrency companies if its regulations did not improve.
With a decision to bring new permissions, Switzerland will likely attract new firms that search for a crypto-friendly location. While Switzerland still has large rivals, such as Liechtenstein and Malta, it made a lot of progress in outperforming them. One of the most important recent moves that it made was allowing a company named SEBA Crypto AG to continue its growth and become the first regulated cryptocurrency bank in the world.
SEBA is run by former UBS bankers, and it managed to secure vital investments from Summer Capital and Black River Asset Management. For now, Zug Crypto Valley continues to grow and develop, allowing Switzerland to become one of the largest global hubs for cryptocurrency and blockchain technology.