Hedgeblock is member of VQF a FINMA supervised SRO
The emergence and development of cryptocurrencies pose obvious challenges to the financial world. Connecting crypto business to a traditional financial world via bank is one of them. Finding such a bank — is an uneasy task: most of the regulators are skeptical about crypto. Whether a crypto business is trying to find a bank or individual is looking for a legal way into crypto, there are laws and procedures to propone them.
One of such laws is MiFID (the Markets in Financial Instruments Directive) which appeared in 2007. This document fixed the main standards for the interaction of participants of the financial market in the European space. Switzerland — is a considered safe haven of world capital and a guarantor of reliability. It is not a member of the EU but is closely integrated into its economy. So, it was detrimental for Switzerland to develop similar provisions. The answer to MiFID was — one of the most influential regulatory organizations in Europe.
History
FINMA was founded in 2007. The organization combined:
- Federal Office of Private Insurance (FOPI),
- Anti-Money Laundering Control Authority (MLCA),
- Swiss Federal Banking Commission (SBFC)
into one large independent Supervisory service — FINMA. “Federal banking Commission” is the most influential entity here. It has been regulating the entire banking system of Switzerland since 1934.
FINMA is a self-regulatory organization. It is primarily responsible for overseeing anti-money laundering by Swiss financial intermediaries. The main goals are:
- control and supervisory measures,
- protection of investors from possible fraud,
- licensing, maintaining a high level of reputation of the Swiss financial market.
The organization receives funding from controlled companies and is considered fully independent. It employs about 350 people, among whom there are lawyers, economists, mathematicians, as well as specialists in audit, investment, and accounting. The activities of the service are regulated by the regulations of the Swiss Parliament.
It is obvious that the regulator has high powers and exercises control over the financial and insurance sphere of the state economy. The supervision service has gained an impeccable reputation, so FINMA-certified brokers are much higher than their competitors.
FINMA recognized self-regulatory organizations (SROs)
FINMA supervises recognized self-regulatory organizations (SROs) in the context of combating money laundering and the financing of terrorism. FINMA assigns the SROs to various risk categories depending on their membership numbers and structure, organization and supervision policy.
Self-regulatory organizations must be recognized by FINMA for their activities in the context of combating money laundering and the financing of terrorism. SROs are supervised from the date on which they are recognized. FINMA monitors actively and directly whether SROs are in compliance with money laundering rules.
VQF
There are numerous organizations created under FINMA activities. VQF is one of them. It was originally established as a quality assurance organization for the financial center of Zug. VQF has held the function of an official, FINMA-recognised Self-Regulatory Organisation (SRO) under the Anti-Money Laundering Act (AMLA) since 1998.
Since 2009 the VQF has also held the function of an Industry Organisation for Asset Managers (BOVV) with professional rules of conduct officially recognized by FINMA. The VQF contributes towards protecting and strengthening the interests of financial intermediaries and their investors, as well as the interests of Switzerland as a financial center.
Hedgeblock
Thus, the VQF License gives the right to provide services related to cryptocurrencies to institutional investors.
A Swiss license is much more desirable, compared to the EMI (Electronic Money Institute license which is the most popular regulatory standard for European and British companies). It also applies to cryptocurrencies in Switzerland and gives a wide range of future business
Switzerland remains a global financial center with a high level of protection for private investors. After a short but uneasy licensing process Hedgeblock finally received a VQF license.
It allows us to claim that our business practices “completely complies” with Swiss anti-money laundering laws. This fact significantly expands the opportunities of any company. Especially the one related to crypto or blockchain. Interaction with traditional investors also becomes more transparent.
Thus, Hedgeblock is a legal and transparent cryptocurrency financial intermediary regulated by a SRO which is supervised by FINMA. Planning financial transactions related to bitcoins, you will definitely look for such a provider. Are you ready to streamline your OTC process with Hedgeblock?
Originally published at https://hedgeblock.co on January 7, 2020.
