Switzerland’s government continues to set the bar for blockchain regulation, passing a slew of new regulations that update current rules to reflect advances in blockchain and crypto-asset technology. The new Swiss rules, which were adopted by the Swiss parliament, are likely to take effect early next year. The modifications cover a number of legislation and were written with a concern for the potential harm caused by under-regulation in this sector, balanced against the requirement for an economically sound approach that does not restrict industry growth.
Bernadette Leuzinger, CEO of Asset Management at Crypto Finance, was cited as stating, “The investment fund enables customers of creative wealth and asset management businesses to engage in this future asset class and to further diversify their portfolio in a secure and regulated way.”
According to Guido Buehler, CEO of SEBA Bank, “asset managers can now offer strategies based on cryptoassets to a broader audience by using Swiss-based mutual fund structures with SEBA Bank as an approved custodian,” and they are “excited to enable liquid investment funds to investors using cryptoassets as the underlying investment universe.”
The Swiss Federal Council made it clear throughout the consultation and drafting process that the goal of the new regulations is to build the best possible environment so that Switzerland can continue to flourish as a leading, innovative, and sustainable blockchain and fintech location. “We are now entering a phase of execution,” a Swiss regulator explained, “where regulators are beginning to participate by enacting new laws and legal frameworks, as well as immediately removing those participants who are wilfully breaking the key principles of the cross-border investment game.”
Other legal criteria include having the fund operated through established counterparties and crypto platforms based in a nation that is a member of the Financial Action Task Force (FATF). Anti-money laundering (AML) rules must also be followed while making investments.
PvB, a Swiss business, will handle the new fund, with SEBA Bank providing custody services, according to Crypto Finance. Meanwhile, the cryptoasset fund will monitor the Crypto Market Index 10, which is presently managed by SIX Swiss Exchange, a leading investing firm.
Using Swiss-based mutual fund structures with SEBA Bank as an authorised custodian, asset managers may now offer strategies based on crypto assets to a larger audience. We’re thrilled to be able to provide liquid investment funds to investors utilising crypto currencies as the underlying asset class. SEBA Bank CEO Guido Buehler adds, “This is a further step in the growth of digital asset investments.”
Philippe Keller and Christian von Ballmoos, managing partners at PvB, are thrilled and satisfied that this complicated fund initiative may finally be launched on solid operational basis, owing to the great collaboration of all parties concerned.
Launching a crypto regulated asset management was the need of the hour and has been taken very vividly by the governments.Most countries’ cryptocurrency rules are still in the dark. Some nations, on the other hand, have welcomed the technology and creativity underlying crypto and have enacted favourable rules for the sector. South Korea enacted laws earlier this year making cryptocurrency trading legal in the country. In the majority of states in the United States, crypto rules are similarly ambiguous. The US Commodity Futures Trading Commission (CFTC) previously said that they intend to create a “holistic framework” for the crypto sector. It was previously reported that Indian politicians intend to outright outlaw the usage of cryptocurrency in the nation.