Swiss Financial Market Supervisory Authority (FINMA) issued the first cryptocurrency asset management license of the country to cryptocurrency asset firm, Crypto Finance AG. Now the company is authorised to offer services to institutional investors in the blockchain based asset class. The newly issued licence is going to open new doors of opportunities for Crypto Finance AG.
Crypto Finance AG is a Fintech holding company which was founded in 2017. Crypto Finance is based in the Crypto Valley of Zug. The company provides blockchain related services through its three subsidiaries: Crypto Fund AG (Asset Management), Crypto Broker AG (Brokerage), and Crypto Storage AG (Storage). The main objective of the company is to facilitate the implementation of blockchain technology in the global economy by providing high-quality financial services.
According to the Chief Executive Officer and Founder of Crypto Finance AG, Jan Brzezek, the licence will have a great impact on the business. He said that “Before getting the license we were a startup. Now we are a full-fledged member of the regulated and established financial system.” The license will allow Crypto Finance AG to manage crypto related investments within Switzerland and to solicit for others elsewhere. The company is also authorised to offer investment advice to corporate investors. Now the company can legally offer a wide range of collective investment products which track Bitcoin and other crypto assets, including domestic funds.
Standards of FINMA are appreciated by regulators around the world so with this licence the company can expand its operations all over the world. Though currently, the company is planning to tap the open-minded Asian market which is open to financial innovation. Crypto Finance AG had a discussion with the Monetary Authority of Singapore (MAS) and might be looking to set a shop in Hong Kong.
Regulations are a great way to increase the mass adoption of digital assets. It is possible that people want to invest in the crypto market but higher volatility and acts such as Wild West are stopping them. The license given by FINMA to Crypto Finance AG will encourage the people to adopt cryptos. Crypto Finance AG has also partnered with a Swiss bank which will onboard the platform’s crypto storage solution and allows the bank to safeguard client’s bitcoins.
Crypto Finance AG has high hopes and believes that the company will bridge the gap between the real world and its crypto counterpart. According to the Chief Operation Officer of Crypto Finance AG, Mathias Maurer, “The promise is huge. Up until now, it has been very tech-driven, but we are starting to see the first concrete use cases that can switch the vision into reality. Just as with the hedge fund industry, it will take two or three years to convince people to invest in this asset class. Then it will really take off.”