FINMA grants its first authorisation to a crypto company

Crypto Fund AG has become the first and only crypto company to receive authorisation from the Swiss Financial Market Supervisory Authority FINMA.

The authorisation falls under the Swiss Collective Investment Schemes Act CISA. It places the subsidiary of Crypto Finance AG on the same regulatory playing field as other globally recognised and regulated Swiss fund managers.

Crypto Fund AG is authorised to manage and distribute domestic and foreign investment funds to qualified investors and provide investment advice for institutional clients.

CEO and co-founder of parent company Crypto Finance AG, Jan Brzezek said: “The FINMA authorization for Crypto Fund AG is a key step for our clients and investors, and for us in becoming a leading provider of digital asset services worldwide.

“The importance of crypto assets is growing, and our aim is to accelerate maturity in these markets. Regulatory recognition remains highly sought after by participants, as seen in recent press and company statements.”

Without FINMA’s stamp of approval, the activities of crypto companies are limited in Switzerland and are only subject to fulfilling compliance with money laundering regulations; however, this does not address prudential supervision over all activities or the organisation of the crypto company.

Crypto Fund AG has also added Professor Fabian Schär to the board of directors. Professor Schär is currently director of the Center for Innovative Finance CIF at the University of Basel in the Faculty of Business and Economics.

His research areas include applications based on blockchain technology such as smart contracts, the transfer of financial assets in blockchain-based units (tokens) and further aspects of distributed ledger technology DLT.

Last month, The Swiss Financial Market Supervisory Authority claimed that Credit Suisse had failed to adequately fight money laundering in suspected corruption cases. FINMA also said the bank fell short of its obligations to fight corruption while managing “a significant business relationship” with a politically exposed person.

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