On September 29, 2021, the first crypto assets fund was approved by the Swiss Financial Market Supervisory Authority

On September 29, 2021, the first crypto assets fund was approved by the Swiss Financial Market Supervisory Authority

Tuesday, 5 October, 2021

One of the significant benefits of innovation is its contribution to technology development and economic growth. In response to this need, the Swiss authority has made new improvements.

 

To encourage genuine innovation, The Swiss Financial Market Supervisory Authority (FINMA) consistently implements the current provisions of financial market legislation in a technology-neutral manner.

 

This time, FINMA chose to live up to the expectations of many other regulators worldwide by approving the country's first crypto-focused fund. 

 

According to FINMA, the Crypto Market Index Fund is restricted to qualified investors and is an investment fund of the type “other funds for alternative investments” with particular risks. 

 

Considering crypto assets take particular challenges, FINMA said the permission was conditional on the fund complying with specific standards, such as investing exclusively in well-established assets with significant trading volume. 

 

Therefore, investors must make their contributions through established counterparties and platforms operating in a Financial Action Task Force member nation and subject to the applicable anti-money crimes rules, according to FINMA.

 

Furthermore, FINMA indicated that there are additional requirements with regard to risk management and reporting for the institutions involved in the management and custody of the assets. However, these special requirements are not further specified.

 

Sources: 

  1. https://www.finma.ch/de/news/2021/09/20210929-mm-genehmigung-schweizer-kryptofonds/
  2. https://mobile-reuters-com.cdn.ampproject.org/c/s/mobile.reuters.com/article/amp/idUSKBN2GP0EA
  3. CoinPayments. _CoinPayments Digest_, no. 39, 2021, pp. 1-4.
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