Approved by the FSA onSwiss “FINMA” financial market, on Wednesdaythe first fund dedicated to Krypto incountry.
FINMA has classified this new cryptocurrency fund among other alternative investment funds.
The Swiss regulator said that although the crypto fund will be regulated under the provisions of the current law, its approval was in a technically neutral way to allow for innovation.
The statement of the authority was as follows:
In order to facilitate innovation, FINMA applies the existing provisions of financial market laws in a consistent, technically neutral manner.
In order to mitigate the risks associated with the volatile crypto market, the new cryptocurrency fund will primarily invest in those assets that have a high trading volume.
Additionally, all cryptocurrency transactions will only be facilitated by counterparties and platforms located in a FATF member country and subject to Anti-Money Laundering (AML) regulations.
Crypto adoption is on the rise.
The adoption of cryptocurrencies in 2021 broke many records as it witnessed a wide participation from different parties, not only institutional investors but the expansion of adoption to include governments as well.
El Salvador has made Bitcoin legal tender while Paraguay, Argentina and Panama have also shown interest in Bitcoin adoption.
Several major financial institutions, including some former critics such as JPMorgan, Morgan Stanley and Goldman Sachs, are seeking to launch crypto-backed funds for investors amid high demand.
More importantly, some of the biggest names on Wall Street are also building and investing in mining infrastructure such as the world’s largest asset manager Blackrock.
The American city of Miami has also built its own cryptocurrency called “Miami Coin”, which operates on the same infrastructure as Bitcoin.