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Swiss companies linked to the blockchain are a step towards legitimacy. Local criptovalute startups can now apply for a new license allowing them to manage deposits of up to $ 100 million, a right normally reserved for banks.
The Swiss Financial Market Supervisory Authority (FINMA) has adopted strict guidelines for cryptocurrency companies to be followed if they hope to receive the coveted "FinTech" license necessary to manage large amounts of money on behalf of investors and customers.
From 1 January next year, companies different from banks may formally request authorization to accept public funds up to $ 100 million as part of their business operations.
To do this, companies must adhere to clear rules that dictate how to manage customer money. For example, they can not reinvest any of them, nor can they pay interest on any assets received at any time.
Cryptocurrency startups must provide complete information
The new cryptocurrency companies will have to present a real mountain of documentation to FINMA in support of their applications.
They must describe satisfactorily the proposed business activity, the geographical scope and the target clientele. FINMA also requires the full responsibility of all members of the board of directors, including addresses, school documents, curriculum vitae, any related criminal records and even references from previous work.
Companies will also need to provide lists of all business participants with a direct or indirect participation of 5% or more of the company. Any foreign citizen will need equivalent documentation from their countries of origin.
The new license was made possible thanks to a recent change to the banking law, specifically designed to promote innovation in the cryptocurrency and blockchain sectors.
This is seen as a necessary step forward for cryptocurrency startups operating out of the Crypto Valley, an important tax haven for new blockchain businesses.
The nation is really willing to push the boundaries of the cryptocurrency industry. Just recently, Switzerland made history by being the first to approve the trade in a Bitcoin-based Exchange Traded Fund, something that cryptocurrency users in the United States have yet to achieve.
Published December 3, 2018 at 15:04 UTC
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