The Swiss Financial Market Supervisory Authority (FINMA) has given the green light for a cryptocurrency market index fund to be the first cryptocurrency-oriented investment vehicle operating within the country with the appropriate license.
- According to a Reuters report released earlier on September 29, the cryptocurrency market index fund will only be available to qualified investors.
- The Swiss Financial Supervisory Authority said it would fall under the category of “other funds or alternative investments”, which are usually associated with higher risks.
- Regarding those potential risks, FINMA explained that the approval came after examining specific requirements. These included the addition of some assets in the fund, which have a sufficiently large trading volume.
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“In order to facilitate serious innovation, FINMA applies existing provisions of financial market laws in a consistent, technologically neutral manner.” – He reads the organizer’s statement.
- The corporation also added that only counterparties and platforms established within its regulatory purview can process investments.
- The European country is among the leading countries in terms of cryptocurrency adoption. The regulator has already approved several similar products geared towards digital assets in the past few years.
- Separately, companies like 21Shares and CoinShares have launched several ETPs on the SIX Exchange.
- Last year, the canton of Zug in Switzerland made it possible for local residents to pay their taxes in bitcoin and ethereum.
Featured image courtesy of CapitalTrustees
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