Swiss financial regulator: a risk Factor for the cryptocurrency investment is 800%

Management to oversee the operations of the financial market Switzerland (FINMA) informally signaled that the risk ratio for cryptocurrency investments should amount to 800%. The Agency announced this figure in a letter dated 15 October in response to the Association request EXPERTsuisse, consisting of experts in the field of tax and audit activities.

In his letter to FINMA also said that the relevant legal provisions are not yet valid, therefore, banks and other stakeholders are often required to clarify this issue.

“FINMA recently received many inquiries from banks and securities dealers, which owns positions in cryptocurrency assets, and subject to requirements on capital adequacy, risk allocation and legal regulations on the calculation of ratios short-term liquidity” —quoted by Swissinfo representatives of FINMA.

In Switzerland, for several years there has been a formal integration of cryptocurrency products and banking sector, this European country is trying to create a legal environment that can support the development and operation of new financial instruments. At the same time, until the international Basel Committee on banking supervision develops all acts and laws necessary to regulate this area, FINMA can only give approximate figures.

However, the final decision may be announced at the end of November, when is the next meeting of the Basel Committee. Therefore:

“All scriptactive must assign an overall risk ratio of 800% to cover market and credit risks, regardless of where hold positions in the banking or trading assets,” — said in a letter to FINMA.

According to several sources, comment on the situation, 800% is a big figure, but it is within the allowable range. For example, the startup SEBA, which in September drew 103 million dollars to create cryptocurrency Bank of Switzerland, said:

“This recommendation will have limited impact on its business model. Nice to see that the banks no longer look away from the increased number of clients requiring services associated with cryptocurrencies, and ask for advice and do your own contribution,” said a spokesman for lobby group Bitcoin Association Switzerland.

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Welcome to Crypto Valley — Swiss blockchain version of Silicon valley

Cryptocurrency and related cryptologie become one of the most popular areas of investment and entrepreneurial activity over the past few years, attracting the sector billions.

Cryptologia called bacchanal, can potentially improve the efficiency of the existing enterprises and create new business opportunities, by removing intermediaries and centralisation of services. Many evangelists compare the potential of the blockchain with the potential of the Internet.

Despite its decentralization, the development of technology, as a rule, occurs in certain places: Silicon valley, new York, Malta, Gibraltar, Singapore and Switzerland — the key hubs.

Switzerland, or rather the small town of Zug, near Zurich, is home to the “Crypto Valley”, a group of cryptocurrency companies and assets.

Last week, Business Insider went to Zug for a conference Crypto Valley to learn how to develop the hub, how important he is and why companies choose Switzerland.

Many transnational corporations are involved in low tax Zug. Region, or “Canton”in the Swiss language, charges a 14% corporate tax. This is one of many business strategies in the region.

Zug is too small to have its own airport so to get there, you need to catch a train, which regularly runs directly from Zurich airport.

The city itself is very small and mostly centered around one road that stretches from the business district to the North and to the old town in the South. People live in the area from 600 ad, although no old building in the city is not preserved.

A journalist from Business Insider arrived the day before the conference and postelsia in the city, to understand the meaning of this place. Given the nickname the Crypto Valley, he expected to find stores that accept Bitcoin, or perhaps even point of sale of cryptocurrencies, but it took some time to identify the features of cryptography.

However, the fact that the city’s money, became clear at once. The silence was broken the sound of high performance engines, luxury cars of local residents.

In 2014 governments and regulators was unusual to discover cryptography. It was the year when the infamous darknet market Silk Road, which is closely related to Bitcoin, was closed by the FBI, and the cryptocurrency exchange MtGox collapsed after a catastrophic hacking.

Zug so early adopted the cryptocurrency thanks to one man — Nikolai Nikolaisen. Nikolaisen worked as a developer in Credit Suisse in Switzerland before you leave and founded in 2013, the service cryptographic services Bitcoin Suisse.

“The government has raised a lot of questions to the founder of Bitcoin Suisse — what is it, how does it work?” says CEO Bitcoin Suisse Arthur Vayloyan. “He was very actively involved in consulting and training of those who wanted to know about technology more. Many people today know their stuff because they had the privilege to learn from Nicholas.”

It is thanks to him in Switzerland so early began positively for cryptocurrency, by defining its attitude clear standards.

Clarity is a good thing for business. For this reason, the cryptocurrency, the company reached out to Zug. Even Ethereum Foundation can be found here. The latter has spawned a new ecosystem of legal, accounting and tax firms, start-UPS and universities engaged in the development of smart contracts.

Crypto Valley Association was created in early 2017 to coordinate the activities of all stakeholders.

“There were many informal meetings, which we began to use the term crypto-valley,” said Bussmann, the former CIO of UBS. As the above-mentioned Silicon valley, Zug is actually in a valley surrounded by mountains.

In 2018 appeared Crypto Valley Labs, which is a platform for co-working. Representatives of startups are going the two-storey building for work, when they are in Zug. It is cryptomath. The coffee shop accepts Bitcoin, and elections are held in the city using the blockchain.

It became clear, in what a secret of popularity of Cryptocurrency Valley. Companies that want to develop in the field of cryptocurrency and blockchain can rely on the support of regulators, not expecting any trick. They can be assured that their interests correspond to the interests of the government and regulatory bodies. For this reason, all drawn in Zug.

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The Swiss lost the package with cryptocurrency in the amount of 800 thousand francs

9 April, a young man named Thomas from the Swiss city of Lucerne as usual went shopping in the supermarket. Having bought all necessary, Thomas was horrified to find that lost package, which was with him after a visit to the Bank.

The worst thing about this story is that the contents of the package was two hardware wallet cryptocurrency, which kept cryptocurrency worth about 800 000 francs.

The young man immediately wrote a statement to the police and also posted the ads, which promises the finder a reward of 40 000 francs. According to Thomas, the third-party person is not able to take possession of the cryptocurrency, so 5% of the lost is a worthy compensation.

Thomas assures that stores its hardware wallets in a jar and takes them twice a year to perform the necessary operations with cryptocurrency. He’s not sure if he left the package containing the device and Keepkey Ledger Nano’s in my car or just forgotten somewhere in a supermarket.

However, he lost the storage device and does not have access to backups, because it does not have the necessary codes.

Thomas was fascinated by the cryptocurrency in the beginning of 2017, when invested 50,000 francs in Neos. After a year its capital was increased to 800 000, due to growth in the prices of the token. Despite the loss, Thomas T. says that still believes in digital currencies and “sees in them great potential.”

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Saga — new Swiss cryptocurrency with built-in control mechanism volatility

The Swiss Foundation Saga announced the creation of the first anonymous digital currency called Saga (SGA), which will be developed with the inherent control mechanism of volatility. This will help new fans become a means of accumulation, and a medium of exchange.

The purpose of Saga is to eliminate problems such as anonymity, lack of basic values and the volatility of the cryptocurrency, which concerned politicians, regulators and market participants.

The owners of Saga must meet the requirements of KYC (“Know your customer”) and AML mechanisms (against money laundering) in compliance with Swiss law.

New cryptocurrency created to facilitate the promotion of the environment with low volatility, and combines the advantages of Blockchain technology and algorithmic representations of financial instruments. For this reason, the Saga will be provided with a set of deposits in Fiat currencies that are tied to special drawing rights of the IMF. These reserves will be deposited in regulated banks with algorithms in the basic system of smart contracts.

The Advisory Board includes eminent economists, such as Nobel laureate in Economics Myron Scholz, former head of the Bank of Israel and Chairman of JPMorgan Chase International Jacob Frenkel, co-author of the Vix Dan Galai and others.

Jacob Frenkel said

“While the technology of the Blockchain is increasingly recognized that cryptocurrencies are faced with public policy issues, since they are anonymous, unreliable and extremely unstable. I share these concerns and see great value in the concept of Saga for appropriate solutions to these problems.”

“Blockchain technology will change the financial infrastructure, from the current focus on processing transactions to analyzing transactions. This contributes to a more effective solution to clients ‘ financial problems. The Saga project aims to create a sustainable and efficient cryptocurrency based on the blockchain, which I support, by becoming a member of its Advisory Board,” said Professor Myron Scholes.

Founder and President of the Foundation Saga IDO, Sagehen:

“Creating a Saga based on interdisciplinary knowledge, allowing to implement a monetary model in order to tame the volatility and to ensure regulatory access to the identity of the participants. We are fortunate that the project involves global leaders who, together with other members of our Advisory Board help to develop the first anonymous digital currency based on blockchain”.

Development center of the company is located in Israel. The Foundation Saga is not going to ICO. He enjoys the support of accredited investors, venture capital funds and hedge funds, including Mangrove Capital Partners, Lightspeed Venture Partners, Singulariteam Technology Group and Initial Capital. To date, the project managed to raise $ 30 million.

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