People, businesses, and governments are becoming more dependent on cryptocurrencies. Their popularity has soared in recent years and many countries have adopted cryptocurrencies.
Its adoption was recently noticed in Switzerland as well, as the first cryptocurrency fund has been approved by Swiss financial authorities.
The Swiss Financial Market Supervisory Authority (FINMA) has recently approved the first-ever crypto fund there, known as the Market Index Fund. Crypto Finance, the Swiss asset manager, launched the fund through PvB Pernet von Ballmoos AG, an investment management firm. SEBA Bank AG is the custodian of this regulation.
However, only qualified investors can have access to the funds, where cryptocurrencies that are blockchain-based are the planned investments. FINMA also suggested that the fund is designated for major leading cryptocurrencies that have a large trading volume.
Crypto Finance states that one of the purposes of the Crypto Market Index Fund is to measure the performance of the Crypto Market Index, which is one of the main products of the SIX Swiss Exchange.
FINMA also stated that those willing to invest should only use counterparties of the Financial Action Task Force since they want to eliminate the possibilities of money laundering.
Additionally, SEBA Bank AG was also approved by FINMA through a CISA license. The former is a custodian service.
A recent announcement by China’s Central Bank regarding cryptocurrencies and new regulations adversely affected the market.
However, such approaches by countries such as Switzerland could as well have a good effect on the crypto market.
Also read: Built-in Multi-Sig Wallets, a Simplified Update Process, and More are All Part of the New Ethereum Update