Swiss exchange SIX gets permission to start cryptocurrency exchange

The Swiss Financial Market Supervisory Authority, or FINMA, on September 10, announced its approval for regulated Swiss exchange SIX to start a distributed ledger-based digital asset marketplace and central securities depository.

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The exchange had originally planned to start SIX Digital Exchange (SDX) in the second half of 2019, however, regulatory difficulties hampered the exchange’s progress. Although no particular launch date was announced, it is believed that consumers will be able to explore the exchange’s products in the near future after overcoming this hurdle.

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“The digitalization of financial markets continues apace, and while the final shape of the market is still evolving, this is an important milestone in providing institutional investors with a safe and robust infrastructure,” Thomas Zeeb, global head of exchanges at SIX, said in a statement.

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SDX is anticipated to begin trading in bonds first, and it is doubtful that shares in already publicly traded firms would be added to the digital exchange in the near future. Stocks and perhaps exchange-traded funds may also trade on the digital exchange, according to SIX authorities.

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Switzerland, often known as the crypto valley, is largely considered one of the world’s most welcoming countries for cryptocurrency activities. In June, the country intentionally chose not to change its taxes rules, stating that it believes the present infrastructure will be adequate for the expansion of blockchain and DTL technology.

21Shares launched its first Polkadot exchange-traded product (ETP) on the SIX Exchange in February of this year, after realizing that there was a growing demand for Polkadot in the region.

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According to current Tax Justice Network statistics, Switzerland, along with the UAE and Bermuda, has lately emerged as one of the world’s fastest-emerging locations for safe-haven funds.