Swiss Blockchain Startups Can Now Handle Up To $100M – Just Like Banks

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Switzerland’s blockchain-related businesses are one step
closer to legitimacy. Local cryptocurrency startups can now
apply for a new license that would allow them to handle
deposits of up to $100 million, a right normally reserved for
banks.

The Swiss Financial Market Supervisory Authority (FINMA) has
released strict guidelines for cryptocurrency businesses to
follow if they hope to receive the coveted “FinTech” license
required to manage large amounts of money on behalf of
investors and customers.

From 1 January next year, companies other than banks can
formally request authority to accept public funds of up to $100
million as part of their business operations.
In order to do so, companies must adhere to clear rules that
dictate how they can handle customer money. For example,
they may not re-invest any of it, nor can they pay interest on
any assets received, at any time.

Cryptocurrency Startups Must Provide Complete Info

Fledgling cryptocurrency businesses will need to submit a
veritable mountain of documentation to FINMA in support of
their applications.

They must satisfactory describe the proposed business
activity, geographical scope, and target clientele. FINMA also
requires full accountability of all board members, including
addresses, educational records, CVs, any related criminal
records, and even references from previous jobs.
Companies will also need to provide lists of all business
participants with a direct or indirect holding of 5 percent or
more of the company. Any foreign nationals will need the
equivalent documentation from their home countries.
The new license was made possible due to a recent
amendment made to the Banking Act, made specifically to
promote innovation within the cryptocurrency and blockchain
sector.

This is seen as a necessary step forward for the
cryptocurrency startups operating out of Switzerland’s Crypto
Valley, a prominent tax haven for new blockchain businesses.
The nation is really intent on pushing boundaries within the
cryptocurrency industry. Just recently, Switzerland made
history by being the first to approve trade of a Bitcoin-based
Exchange Traded Fund, something cryptocurrency fatcats in
the US are yet to achieve.

Source : https://thenextweb.com