SEBA Bank AG has received a KAG license from the Swiss Financial Market Supervisory Authority (FINMA) to support an institutional custodian bank for domestic collective investment schemes.
SEBA Bank AG is a Switzerland-based, fully regulated organization that specializes in the sale of digital cryptocurrency assets. With this announcement, the bank is the first digital asset-centric bank in Switzerland to receive a custody license and one of the first in the world. With the approval, the institute can offer professional clients in the emerging cryptocurrency markets greater investment opportunities.
Approval of the Crypto Assets Fund
According to the regulatory authority, the Swiss Financial Market Supervisory Authority certified the Crypto Market Index Fund as the first crypto fund under Swiss law on September 29. The fund is managed by PvB Pernet von Ballmoos AG, and custody is carried out by SEBA Bank AG, which is a regulated custodian bank.
According to FINMA, the newly approved fund is restricted to eligible investors and invests mainly in cryptocurrencies or digital assets based on blockchain or distributed ledger technology.
FINMA determined that investors only need to invest through established counterparties based in a member country of the Financial Action Task Force and who are subject to anti-money laundering laws.
According to the regulatory authority, the Crypto Market Index Fund can only invest in well-known cryptocurrencies with a sufficiently large trading volume. The Crypto Market Index 10, a product regulated by the SIX Swiss Exchange, is tracked by the fund according to Crypto Finance.
Crypto Finance further stated that the goal of the Crypto Market Index 10 is to provide an investable benchmark for this asset class by accurately measuring the performance of the largest and most liquid crypto assets and tokens.