Swiss market regulator approves first crypto assets fund
08:00, 29 September 2021
The Swiss Financial Market Supervisory Authority (FINMA) announced on Wednesday that it has approved Switzerland’s first fund that invests primarily in crypto assets.
The Crypto Market Index Fund will be restricted to qualified investors only, and categorised under “other funds for alternative investments” with particular risks, FINMA said in a statement.
The regulator said that in order to facilitate innovation, existing provisions of financial market laws will be applied.
“In doing so, it makes sure that new technologies are not being used to circumvent the existing rules, and that the protective goals of financial market legislation are preserved,” FINMA said.
The watchdog also said that the fund can only invest in established crypto assets with a sufficiently large trading volume.
Moreover, the investments must be made through established counterparties and platforms that are based in countries which are members of the Financial Action Task Force (FATF). The investments will also be subject to corresponding anti-money laundering regulations, FINMA said.
“Finally, there are specific requirements with regard to risk management and reporting for the institutions involved in the management and custody,” the statement added.
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