The brokerage division of Crypto Finance Group – Crypto Broker AG – has received a brokerage license from the Swiss Financial Markets Authority (FINMA).
Crypto Broker AG CEO Rupertus Rothenhaeuser said the license would expand the firm’s reach, enhance regulatory compliance, and facilitate risk monitoring and liquidity reporting. Many banks are ready to work only with regulated partners, imposing strict requirements on them. According to Rothenhauser, now Crypto Broker AG can work with any Swiss banks, including cryptocurrency banks SEBA and Sygnum.
In addition, Crypto Broker AG will be able to work with regulated share tokens thanks to amendments to financial and corporate legislation in Switzerland, which take into account cryptocurrencies and blockchain. Rothenhauser added that as a licensed broker, Crypto Broker AG will be able to store client funds in fiat currency, thus eliminating the complexity of processing payments. However, the head of Crypto Broker AG did not disclose which major players would use the firm’s services.
“On the one hand, we work with the latest technology. But on the other hand, the payment cycle of cryptocurrency transactions sometimes resembles the 80s of the last century. With a broker-dealer license, we can hold funds in an account, which will allow us to process trades more efficiently and maximize our margin, ”said CEO of Crypto Broker AG.
The Swiss government is actively developing the regulation of the cryptocurrency industry in order to create the foundation for its development in the country. However, only a few firms receive FINMA approval. The regulator believes that digital assets and cryptocurrencies contribute to money laundering, and Switzerland is especially susceptible to such risks due to its loyalty to this industry.
