Swiss financial regulator approves registration of crypto fund

Only qualified investors will be able to enter the fund, investing their funds mainly in cryptocurrency assets. In Switzerland, qualified investors are understood as legal entities - financial companies and individuals who have the opportunity to invest a minimum of 2 million CHF (~ $ 2.15 million) [Art. 10 Para. 3 of the Swiss Federal Collective Investment Schemes Act (CISA)].

The fund created a company called Crypto Finance and named it «Crypto Market Index Fund». Under Swiss law, this structure is classified as «another high-risk alternative investment fund». 

To promote the development of financial innovation, FINMA applies the existing provisions of the legislation on financial markets. At the same time, the regulator clearly monitors those new technologies are not used to circumvent existing rules and that the sought goals of financial legislation are preserved. Since cryptocurrency assets carry a special level of risk, FINMA has introduced several special provisions on crypto funds. For example, a crypto fund can only invest in certain cryptocurrencies. In addition, investments must be made through renowned partners and using platforms based in the member states of the FATF (Financial Action Task Force). 

The FATF includes 37 countries, including the Russian Federation, as well as the European Commission and the GCC (Gulf Cooperation Council).

In general, the tightening of regulation of the crypto market in Switzerland should be noted. In particular, the Swiss regulator decided to lower the minimum threshold for user verification. Transactions over 1080$ per month are subject to stricter financial monitoring. Comparing the requirements of FINMA with the Swiss currency regulator, the latter turned out to be less demanding. To exercise a supervisory function over the flow of fiat money, the regulator set a threshold of 5400$ per month.

If you have any questions regarding the registration of a cryptocurrency fund in Switzerland, the A4 Law Firm team will be ready to provide legal assistance and accompany your project.