Cryptocurrency asset firm, Crypto Finance, has made history by being the first crypto platform to receive approval from the Swiss Financial Market Supervisory Authority (FINMA).
Regulations are, arguably, a great way to increase mass adoption in the crypto industry. People and investors may be interested in entering the market but volatility and a Wild West reputation act as deterrents. For one crypto platform though, this could be a problem of the past.
Swissinfo reports that cryptocurrency asset firm, Crypto Finance, has received regulatory approval from the Swiss Financial Market Supervisory Authority (FINMA). The platform’s Crypto Fund now has an asset management license, which will open up new doors for the company.
Looking at an Asian Horizon
The CEO of Crypto Finance, Jan Brzezek, explained the impact that this approval will have on the business:
Before getting the license we were a start-up. Now we are a fully-fledged member of the regulated, established financial system. FINMA has exacting standards that are appreciated by other regulators around the world.
So, what’s the next step for the Zug-based platform? Expansion of course, and it seems as if Brzezek has his eye set on Asia:
Asia is an open-minded market, open for financial innovation. In Asia banks don’t mean physical buildings, they are apps.
The platform has had discussions with the Monetary Authority of Singapore (MAS) and may be looking at Hong Kong to set up shop. If they do decide to go with the latter, they may encounter a friendly reception. Live Bitcoin News recently reported that a cryptocurrency investment bank is awaiting approval from FINMA. In the meantime, the start-up has received a contribution from a Hong Kong-based investment firm.
FINMA Approval Could Push Adoption
In addition to being the first cryptocurrency platform to receive approval from FINMA, Crypto Finance has also partnered with an unnamed Swiss bank who will onboard the platform’s crypto storage solution, which, in turn, will allow the bank to safeguard clients’ bitcoins.
The team at Crypto Finance has high hopes for the future and believes that this is the beginning of bridging the gap between the so-called real world and its crypto counterpart. The group’s Chief Operating Officer, Mathias Maurer, explained:
The promise is huge. Up until now it has been very tech-driven, but we are starting to see the first concrete use cases that can switch the vision into reality. Just as with the hedge fund industry, it will take two or three years to convince people to invest in this asset class. Then it will really take off.
The road to regulatory approval, from Switzerland at least, is a long one. Over the course of a year, authorities dug deep into Crypto Finance’s history including investor- and financial information. However, it definitely seems as if it was worth it in the end.
Which Asian country do you think that Crypto Fund should expand to? Let us know in the comments below!
Images courtesy of Shutterstock, Pixabay
Regulations are, arguably, a […]