Swiss financial regulators have green-lighted the creation of the country’s first digital asset fund, according to Reuters. The exclusive fund, named the Crypto Market Index Fund, will be available only to qualified investors.
Key takeaways:
- While the Swiss Financial Market Supervisory Authority (FIMNA) has given its blessing for the new cryptocurrency fund, the financial watchdog is still cautious in regards to crypto investing.
- The regulators have decided to impose restrictions on the freshly approved crypto fund, such as restricting trading to established digital tokens only, which routinely achieve high trading volume numbers, such as Bitcoin and Ethereum.
- Additionally, eligible traders can only make purchases and issue sell orders via platforms that are based in countries that follow the rules and guidelines of the Financial Action Task Force (FATF) and the agency’s anti-money laundering regulations.
- Due to the rise in cryptocurrency adoption by European-based businesses, the region as a whole has grown to become the largest crypto economy, accounting for 25% of global cryptocurrency activity.
- Large financial institutions, such as the newly approved Swiss crypto fund, were the biggest drivers of growth on the old continent. For reference, large institutional transactions accounted for more than half of the total transactional volume in June 2021, with most funds going to DeFi services, namely Uniswap and Instadapp.
