Zurich-Switzerland’s financial markets supervisory said on Wednesday that it has approved the country’s first fund that invests primarily in crypto assets.
The Swiss Financial Market Supervisory Authority (FINMA) said in a statement that crypto market index funds are restricted to qualified investors and are classified under “other funds for alternative investments” with special risks.
Crypto assets are based on blockchain or distributed ledger technology.
“In order to facilitate serious innovation, FINMA consistently applies existing provisions of financial market laws in a technology-neutral manner,” thus ensuring that new technologies are not used to circumvent existing regulations.
Since crypto assets involve special risks, FINMA stated that it has tied the approval to specific requirements, including that the fund can only invest in established assets with sufficiently large trading volume.
FINMA said investments must also be made through established counterparties and platforms based in a member country of the Financial Action Task Force and subject to the relevant anti-money laundering regulations.
This News Originally From – The Epoch Times