FINMA continuing the war against unregistered Crypto companies

Unregulated Crypto brokers have been popping up all over Switzerland lately, and the local financial regulator, Financial Market Supervisory Authority, aka FINMA has been trying to manage them for a long time now. Switzerland is an exceptional place for cryptocurrency companies, as it is in the middle of the European continent and does not have any of the regulatory frameworks that limit EU countries, for one simple reason, Switzerland is not a part of the EU.

Despite the relative youth of cryptocurrency companies, Switzerland still has a lot of experience in dealing with regulations and management. It all comes to the WCX Platform that is located within their borders.

Crypto Companies claiming licenses

One of the biggest issues that FINMA had to battle were false claims from the companies. Several of which announced to their audiences, saying that they were compliant with the FINMA regulatory framework, which was clearly not the case.

Switzerland is one of the more “open-minded” countries in terms of cryptocurrencies. The country itself is considered to be the motherland of Finance. It has long been a desired location for multiple traditional market companies such as KontoFX as well. Thanks to this much desire, the country has probably one of the most sophisticated financial institutions and is able to regulate them on a scale not yet heard of. But the decentralized nature of cryptocurrencies was something they still had problems with. However, this occurrence of fraudulent Crypto Brokers will help them gain expertise in tracking and managing undocumented ledgers and transfers with cryptos.

Ways Switzerland is implementing cryptos

The WCX Platform is just a small mention in the headways Switzerland has made in terms of crypto development. One of their most notable actions was the licensing of the Dukascopy ICO, which is a first of its kind for Switzerland. After the approval, FINMA also published their ICO guidelines, but it can be said that Dukascopy the first ever Banking license holder to actually release its very own crypto.

These events are doing nothing but popularize Switzerland in the eyes of the crypto community. FINMA has actually been receiving floods of applications for a license. The reason is quite simple as well. As little as $100 million handling of public deposits is enough to score a license with them. Judging by the crypto boom a year ago and a potentially profitable future, crypto companies are able to reach that quote very easily.

 

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