The main Financial regulator in Switzerland— Financial Market Supervisory Authority (Finma) has recently made it known that crypto asset companies in the country are now allowed to handle up to 100 million Swiss francs ($100 million) in public deposits, once given the necessary licence.
New Regulation New Guide Book
Previously, only commercial banks had the luxury of handling deposits this huge. With the new regulation act, the country will be promoting blockchain adoptions within its borders and increasing its market share in the global cryptocurrency market.
Just like with any new regulations there are guidelines to follow in order to ensure that the true intention of the innovations is achieved. In this case, Finma made sure to include a clause that not only prevents fraudulent activity but also protects users funds deposited with this business entities. Finma made it known that once a Blockchain and cryptocurrency-related businesses are given a license to operate within the region, such business “may not invest” or “pay interest”
This new law is expected to take effect come January 1 2019.
According to a recent report, businesses applying for licensing are required to tender a clear documentation of their “business, target market and location.’
Also, a full disclosure of personal information belonging to the firm’s board of directors is required.
The report also states that: “shareholders that directly or indirectly own 5 percent or more of the issued capital of a company must be disclosed to Finma. The same applies to foreign shareholders that hold equivalent equity stakes.”
Finma Require Full Disclosure
Finma also made it clear in its recent report that:
“companies must submit any information on agreements, such as shareholder deals, and any “other ways in which the applicant may be controlled or materially influenced.”
The report continued by saying that:
“The license application must contain a detailed justification. All relevant information must be documented, and changed documents must also be submitted with changes tracked.”