Switzerland’s Financial Regulator Announces $100 Million Public Fund Licensing for Blockchain and Crypto Companies
Switzerland is already well-known for its innovative financial system, so it’s no surprise that the country is also friendly and supportive of digital currencies and blockchain technology. Based on this, recent reports indicate that the Swiss financial regulatory authority, the FINMA, has decided to allow public sums as large as $100 million to be licensed to crypto and blockchain-based companies.
Encouraging blockchain innovation
Generally, there are two things a government can do to encourage the growth of a market within their territory: create a complete regulatory framework, and offer financial incentives to start-ups involved with the industry.
As such, FINMA has made its announcement via a press release, which also outlined the main guidelines that firms looking for public funding must abide by. So far, the guidelines in question have been referred to as relaxed, which isn’t surprising, granted we are talking about the Swiss. The $100 million limit for public fund licensing is of the same level when compared to banking corporations, and similar financial institutions.
Sources state that FINMA’s decision to offer a stronger incentive to blockchain-based firms is the direct result of a recent decision regarding the expansion of companies allowed to obtain public forms of funding.
When it comes down to the guidelines, firms looking to obtain public funding need to abide by anti-money laundering regulations, disclose certain information about their business, and respect several other normative requirements designed for blockchain and crypto firms. Additionally, blockchain firms looking for public funds licensing will also be required to respect the decisions taken by the Swiss Blockchain Community, which is a self-regulating body designed to encourage industry growth and innovation.
Alongside these aspects, it is important to acknowledge that the Switzerland government has created a complete regulatory framework for cryptocurrencies and blockchain use. Thanks to its friendly approach, the country has already become a hub for blockchain development, and has often been referred to as the world’s Crypto Valley.
Based on everything that has been outlined so far, Switzerland’s decision will hopefully encourage other countries to pursue policies that are friendlier towards digital currency and blockchain use.