Switzerland issues first license to crypto exchange

Switzerland's FINMA for the first time grants licensure to a cryptocurrency exchange
20 October 2017   2249

For the first time, the Financial Market Supervisory Authority (FINMA), a regulatory arm of the Swiss government, has licensed a crypto exchange to operate as a Directly Subordinated Financial Intermediary.

In the official press release, the exchang called "Payment21" describes the licensure as the result of “over one year of substantial effort.” 

We are committed to meeting the legal requirements of the Swiss financial marketplace.  Our handling of compliance issues enriches the digital currency ecosystem, and demonstrates that Swiss regulators embrace competitiveness in financial services, and truly encourage Fintech innovation in the digital era.
 

Bernhard Kaufmann 
Managing Director of the exchange

The man also highlights that "government licensing is crucial when establishing a payments business". Indeed, an official approval in a leading European financial center like Switzerland is a key differentiator in the competitive landscape.

Though this is a first for FINMA, the body has recently made other forays into the crypto space.
 

Bernhard Kaufmann 
Managing Director of the exchange

Payment21 is going tp expand into other cryptocurrency sectors.  For now, it also processes Bitcoin transactions on behalf of ecommerce vendors, enabling them to accept the cryptocurrency as payment for goods and services. 

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   308

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.

 

People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.