Swiss market watchdog approves first crypto asset fund

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The representation of the Bitcoin cryptocurrency is placed on the PC motherboard in this illustration taken on June 29, 2021. REUTERS / Dado Ruvic / Illustration

ZURICH (Reuters) – Switzerland’s financial markets supervisor said on Wednesday it had approved the country’s first fund that invests primarily in crypto assets.

The Crypto Market Index Fund is reserved for qualified investors and classified in other funds for alternative investments presenting particular risks, the Federal Financial Market Supervisory Authority (FINMA) said in a statement.

Crypto assets are based on blockchain or distributed ledger technology.

In order to facilitate serious innovation, FINMA applies existing provisions of financial market laws in a consistent and technologically neutral manner, she added, thus ensuring that new technologies are not used to circumvent the rules. existing.

Since crypto assets carry particular risks, FINMA said it tied the approval to specific requirements, including that the fund can only invest in established assets with a sufficiently large trading volume.

Investments must also be made through established counterparties and platforms that are based in a Financial Action Task Force member country and are subject to corresponding anti-money laundering regulations, FINMA said.

Reporting by Michael Shields; Edited by Ramakrishnan M.

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