Swiss-based Startup Secures License to Launch Blockchain Investment Platform
A Swiss-based startup, Smart Valor, has secured a license from the country’s financial regulatory body to launch its blockchain investment platform in Q4 2018.
Smart Valor Obtains Regulatory Approvals
According to Reuters, Smart Valor, a blockchain startup based in Switzerland, recently gained approval from the Swiss financial regulatory body, FINMA. With this approval, the company can launch its proposed online investment platform before the close of 2018. Smart Valor, along with some blockchain startups, have successfully gained approval from FINMA, but many startups are operating without FINMA regulation.
Switzerland, a well-known “Crypto Valley” center, is host to several digital currency startups. However, the absence of clear-cut regulatory rules and periodic checkups are major setbacks for these crypto projects. Financial institutions like banks find the trend unsafe, and outrightly refuse to conduct any financial activity with the industry.
The Swiss company’s new status lends credibility to the blockchain industry, as its compliance with anti-money laundering rules will be monitored. It will, however, be supervised by VQF, a FINMA-proxy. VQF confirmed smart Valor’s membership on August 5.
According to the blockchain startup, its new online platform will kick off in the last quarter of 2018. The new platform will be for alternative investments, which will include virtual currencies. The company also said that these assets, supported by blockchain technology, will be in the form of tokens on its platform.
Most of these investments have previously only been available to a small elite of high-net-worth individuals and institutional investors. Tokenisation transforms the way people own things, improves liquidity, and makes these investment opportunities accessible to a broader audience of investors.
The company has expressed its intention to expand its services by mid-2019, by applying for a banking license. It further said that its expansion would include blockchain and cryptocurrency-based projects,
State of the Swiss Blockchain Landscape
Despite being one of the more recognizable centers for cryptocurrency and blockchain technology commerce, Switzerland is in danger of falling farther down the pecking order due to lack of banking support. Many projects are electing to move their operations to crypto-friendlier nations.
Earlier in the year, in a bid to stem the tide of ICO migrations from the country, financial regulators introduced firm guidelines for ICOs.