News coming out of Zurich suggests that Swiss blockchain startup Smart Valor has gained regulatory approval, placing it among a select group of blockchain firms to win approval to operate in the Swiss financial market.
It is believed that this latest move will open the door for Smart Valor to launch its own online investment platform later on this year.
Progress being made
Having made a name for itself as the home of “Crypto Valley,” Switzerland has played host to hundreds of cryptocurrency projects over the past few years, but a distinct lack of regulatory clarity and checks has led to banks becoming uneasy, with many of them cutting off access to financial services for those who work within the crypto industry.
A number of firms have made progress in receiving approval from market supervisor FINMA to offer cryptocurrency services to their clients, the majority of startups who run their own digital currency or blockchain platforms are not yet regulated under financial supervision rules.
While Smart Valor will not be supervised directly by FINMA, and rather by an associate called VQF, this still means there will be checks made for anti-money laundering compliance.
While VQF, who are fully approved by FINMA, confirmed Wednesday that Smart Valor had been accepted as a member, they declined to comment on any other blockchain platforms which are applying for approval as financial intermediaries.
The intention of Smart Valor at this stage is to launch an alternative platform for investments, which includes cryptocurrencies, in the final quarter of this year.
An application for a banking license is on the cards
“Most of these investments have previously only been available to a small elite of high-net-worth individuals and institutional investors,” claimed Chief Executive Olga Feldmeier.
“Tokenization transforms the way people own things, improves liquidity, and makes these investment opportunities accessible to a broader audience of investors.”
Smart Valor has already announced plans that they have scheduled for the first half of next year to apply for a banking license, which would allow them to expand their services to include securities investments.
“Pending regulatory approval, the VALOR platform will expand its offering to asset-backed tokens, such as equity in blockchain companies, blockchain-related infrastructure projects, real estate, crypto funds, venture capital, and private equity funds,” the group commented in a statement.
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