The Financial Supervisory Authority of Switzerland is planning to authorize cryptocurrency exchanges registered in the country to act like commercial banks with new licensing starting from 2019 allowing them to store the deposits of trades up to 100 million Swiss Franc (100302400 USD).
The government of Switzerland has been cryptocurrency friendly by providing cryptocurrency regulations and inviting more and more cryptocurrency related businesses to register in the country.
What the FINMA license will work?
The reserves held with the exchange which has a limit of 100 million Swiss Franc cannot be invested funds. The exchanges who would like to register under the new license shall convey their request to FINMA demonstrating their business plan and scope for the next 3 years and mentioning about their targeted customers.
The registrations shall be checked in depth by FINMA and the history and criminal records of the officials of exchanges applying shall be examined carefully before granting the license. For the overseas exchanges (outside of Switzerland) wanting to obtain the license shall register all their shareholder who holds more than 5% of the companies stake under the license agreement.
The government of Switzerland has been adopting new technologies such as blockchain and cryptocurrencies very quickly in comparison to other nations which make Switzerland one of the top nations for crypto and blockchain businesses. Recently, the government of Switzerland had approved the world’s first cryptocurrency ETP on SIX EXCHANGE which is one of the largest stock exchanges in Europe.
The question which arises here is that with more and more nations around the world are adopting cryptocurrency and blockchain technology, is a price boom foreseen? What are your thoughts? Tell us in the comments section below.