Blockchain Company In Switzerland Applies For 2019 Banking License
Switzerland has always been one of the friendliest companies towards cryptocurrency and blockchain technology. Following their typical financial strategy of allowing the free market to flourish and generate revenue and innovation alike, the country has been especially embracive to the fintech companies which have dominated the new and budding cryptocurrency and blockchain sectors in the past two years.
This has created the perfect conditions for the explosion of cryptocurrency-based businesses, many of which have already won the support of regulators within the nation.
A new Swiss startup is captivating the interest of researchers, investors, and institutional authorities within Switzerland. Smart Valor has recently won the regulatory support of local Financial Supervisory Authority, known as FINMA. Starting next year, the startup company will fall under the regulatory authority of FINMA, which is an organization tasked with responding to regulatory concerns of financial technology companies.
It is unclear, however, if this will set a precedent that blockchain-based companies will all fall under the authority of this same regulator, or if the country will draw some sort of a line in the sand for the crypto companies which seek regulatory decisions from their government.
The company plans to launch their own digital platform for alternative investments, a blanket term which will include cryptocurrencies and digital currencies alike. The product and platform is expected to be released in the ending quarter of 2018, and it has already won the interest of numerous investors and participants within the country.
Swiss Regulatory Concerns
Switzerland is one of many countries that have struggled in the past two years regarding the proper way to respond to and regulate the new and budding world of cryptocurrency and blockchain. The country has flip-flopped back and forth on the issue in an attempt to figure out which of many methods and regulatory frameworks might be the most effective way to regulate the thousands of hopeful startups within the country.
But now, the movement by Smart Valor might actually help to quell regulatory concerns and provide some much-needed clarification on a variety of issues. In particular, some professionals within the industry speculate that the authority of the FINMA organization over cryptocurrency might end up allocating specific regulatory power to FINMA over many different types of blockchain organizations looking to sew their seed in Switzerland.
Smart Valor Approval
The future of this exchange company is largely dependent on how they handle the new regulatory relationship with FINMA. To start, the startup has already won a major battle by gaining access to work with the local VQF organization, which will help to ensure compliance with all of the many anti-money laundering compliance laws in Switzerland.
For Switzerland, this road to regulation is going to be a determining factor in how the country responds to and attracts the participation of cryptocurrency organizations all over the world in coming years. Swiss lawmakers have been successful in working towards the creation of packages of legislation meant to regulate blockchain technology, and this case will without a doubt become a case study in regulatory authority.