The receiver is Crypto Fund, a sister company established in 2017 by Zug-based Crypto Finance AG. Report indicates that until now the fund was able to dispense offshore-based cryptocurrency funds under FINMA rules.
The latest permit, however, will allow the firm to legitimately put forward a broad range of collective speculation products that track Bitcoin (BTC) and other crypto assets.
The license also enables the firm to offer investment consultancy services for institutional clients — fundamentally providing it the identical flexibility as that given to conventional Swiss asset managers.
According to Swissinfo, there is a rush of competing crypto funds “queuing up” to obtain approval for a range of crypto-related products and services, which comprise applications for a permit to provide full banking facilities for cryptocurrency businesses in the country.
Zug is referred to as the “Crypto Valley,” because of the large number of blockchain- and crypto-related projects active in that region. This summer, local companies joined hands with the Zug government to test a blockchain-based municipal voting system.
Switzerland more broadly is uniquely hands-on when it comes to controlling the new crypto space. In February of this year, FINMA issued comprehensive rules on ICOs. According to the newly laid out rules, utility and asset tokens are compulsorily governed under securities laws. Payment tokens, however, fall under the Swiss Anti-Money-Laundering (AML) Act.