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Swiss financial authority (FINMA) assessing bitcoin

Will Switzerland soon be home to an expansive bitcoin market? Perhaps, but it depends on how the Swiss Financial Market Authority (FINMA) acts moving forward.

Recently, FINMA modified its Collective Investment Schemes Ordinance by adding the peer-to-peer decentralized digital currency bitcoin to it , which could very well paint a picture as to how the cryptocurrency could operate in the Swiss economy and financial markets.

FINMA, an organization that protects creditors, investors and policy holders by providing a “smooth functioning of the financial markets” and ensuring consumers of a safe financial market, noted that it understands that the bitcoin industry does in fact face a series of risks to the average consumer. This means that the financial group will take several precautions and measures as it studies the virtual currency.

In its ordinance, FINMA stated that it recognizes that bitcoin users could very well be breaking various laws even if they’re oblivious to it. Therefore, FINMA officials are urging potential investors to perform their due diligence and necessary research before acquiring bitcoins.

Bitcoin’s association with the underground economy was also iterated in its edict. It warned that if a bitcoin consumer were to participate in a transaction with the wrong individual then there would be two scenarios: the unscrupulous culprit would likely not be caught and the purchaser will likely not get back their bitcoin holdings.

Switzerland has welcomed bitcoin with open arms over the past year as it understands that it could help the European financial hub’s economy and further promote business and investment. How the public and private Swiss sectors react to bitcoin is still up in the air.

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