thecryptobasic.com
Switzerland’s financial watchdog Financial Market Supervisory Authority (FINMA) on Wednesday approved the country’s first-ever dedicated crypto fund.
Swiss markets watchdog approves first crypto assets fund https://t.co/y6sZMxY5yc pic.twitter.com/5D7sXAE4ce
— Reuters (@Reuters) September 29, 2021
The FINMA explain that the new fund—the Crypto Market Index Fund—is only open to qualified investors and falls under the category of alternative investment funds, therefore bearing certain risks for customers.
The Swiss regulatory watchdog said even though the crypto fund would be regulated under the existing provisions of law, it has been done in a technology-neutral way to make way for innovation.
“In order to facilitate serious innovation, FINMA applies the existing provisions of financial market laws in a consistently technology-neutral way,”
The regulator’s statement also says that this approval has been made “in order to facilitate serious innovation” and emphasizes that nascent technologies will not be used to break the existing rules of the financial market.
In order to mitigate risks associated with the volatile crypto market, the new crypto fund would primarily invest in those assets which have a high trading volume. Along with that, all crypto transactions would only be facilitated via established counterparties and platforms that are based in a member country of the Financial Action Task Force (FATF) and are subject to corresponding anti-money laundering (AML) regulations.