Switzerland’s Financial Market Supervisory Authority (FINMA) has introduced a new fintech license with “relaxed” requirements that is applicable to blockchain and cryptocurrency-based firms.
The regulator announced Monday that the new license allows approved “innovative financial companies” to accept public deposits of up to 100 million Swiss francs (or just over $100 million), provided the funds are not invested and no interest is paid on them. The move is a result of a late-November amendment to the country’s Banking Act by the Federal Council to promote fintech innovation.
Effective Jan. 1, 2019, blockchain firms that wish to be licensed under the scheme must meet certain certain conditions. Firstly, the entity must be a company limited by shares, a corporation with unlimited partners or a limited liability company. Secondly, it must also have its registered office and conduct its business in Switzerland, the regulator explained.