The Swiss Financial Market Supervisory Authority (FINMA) has approved the region’s first crypto fund. However, access to the Crypto Market Index Fund has been restricted to only qualified investors.
FINMA categorized the fund as "other funds for alternative investments" that have particular risks. According to the financial watchdog, the approval of any crypto asset fund is tied to specific requirements due to the industry’s risks.
For example, the fund may only invest in assets that are established with a large trading volume, and investors can only transact through established counterparties. The counter platforms must also be located in a member country of the Financial Action Task Force and must be compliant with anti-money laundering regulations. The Swiss regulator said:
In order to facilitate serious innovation, FINMA applies the existing provisions of financial market laws in a consistently technology-neutral way.
According to CNBC, FINMA recently issued a pair of licenses to SIX Digital Exchange, the digital arm of the country's stock exchange SIX. The licenses will enable SIX to operate a stock exchange and depository for blockchain-based securities.
FINMA is also working to set up a favorable framework for cryptocurrency to thrive, by applying more stringent AML policies.