New Swiss FinTech License Requirements For Blockchain-Based Firms

New Swiss FinTech License Requirements For Blockchain-Based Firms

The “crypto-nation” continues to support the development of FinTech businesses by instituting “relaxed” license requirements.

Switzerland’s Financial Market Supervisory Authority (FINMA), the country’s financial regulator, announced yesterday, December 3, a series of new, “relaxed” requirements for blockchain- and cryptocurrency-based firms applying for a FinTech license. The regulator is moving forward with the goal of promoting innovation in the FinTech sector and removing barriers to market entry for FinTech firms.

Beginning January 1, 2019, FINMA, which is responsible for granting the FinTech license, will supervise firms subject to the relaxed requirements. An official statement explained: “Upon receiving license applications, FINMA assesses whether the intended business activities require a license and whether the planned business activities are possible under the terms of the FinTech license.”

FINMA will inform the applicant which FINMA staff member is responsible for the procedure and whether any additional information or documents need to be submitted. In order to receive a FinTech license, a company must meet two specific conditions: Firstly, the company has to be “limited by shares, a corporation with unlimited partners, or a liability company,” and secondly, the company “must have its registered office and conduct its business activities in Switzerland.”

The official statement also includes a set of official guidelines meant to make the application process for licensees easier, detailing what information needs to be given to FINMA. This includes the reasons for applying for the license, a description of the proposed business activity, and a business plan with a “budget (balance sheet, income statement) for the next three financial years with optimistic, realistic, and pessimistic scenarios.”

The FinTech license allows institutions to accept public deposits of up to 100 million Swiss francs, around $100 million. The terms of the license, however, stipulate that the companies are neither allowed to invest the public deposits nor pay interest on them. This was part of an amendment to the Swiss Banking Act, which was proposed in December 2016 and approved for January 1, 2019.

In January 2018, Johann Schneider-Ammann, Switzerland’s economic minister, stated that the country should strive to become Europe’s “crypto-nation,” and saw cryptocurrencies as comprising “part of the fourth industrial revolution.” The revamped requirements are another item on FINMA’s list of efforts to lead the way on standardized practices and regulations for Switzerland’s blockchain and cryptocurrency firms.

Nicholas Ruggieri studied English with an emphasis in creative writing at the University of Nevada, Reno. When he’s not quoting Vines at anyone who’s willing to listen, you’ll find him listening to too many podcasts, reading too many books, and crocheting too many sweaters for his dogs, RT and Peterman.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Switzerland, FINMA or other Ethereum law and legislation news.

Source: New Swiss FinTech License Requirements For Blockchain-Based Firms

5 Companies That Want to Take the Time Suck Out of Prior Authorization Requests

5 Companies That Want to Take the Time Suck Out of Prior Authorization Requests

Photo: Medcity News

The prior authorization process is a frequent, time-consuming process for physicians. A survey of 1,000 physicians revealed they made prior authorization requests 37 times per week on average, according to data from the American Medical Association. About one-fifth of the survey participants said it takes 20 hours to do these requests each week. It’s no wonder small and large health IT vendors see opportunities to use technology to create a more efficient workflow. It’s also yet another reason  One of the best and most recent examples of the opportunity health IT vendors see in this market is the huge acquisition of CoverMyMeds earlier this year. (more…)

StartEngine To Host ICOs That Are Compliant With the US Securities and Commissions (SEC) Regulations

StartEngine To Host ICOs That Are Compliant With the US Securities and Commissions (SEC) Regulations

StartEngine has decided to take ICOs into a whole new level. Being a US regulated crowdfunding business and a Regulation A+ platform, StartEngine will be the first crowdfunding platform to introduce ICOs, to the mainstream economy, as a modern vehicle for crowdfunding. Today, StartEngine published a press release that announced that the company will start accepting ICOs .

(more…)

What’s the biggest mistake startups make when it comes to intellectual property?

There are few things more exciting in law practice than seeing a startup take shape and come to market. From the initial meeting of the principals and company formation to actual launch of products and services, the process of bringing a startup to life and watching it evolve never gets old. Inevitably, every startup faces hurdles… and those hurdles do not exclude the creation and protection of intellectual property assets. In fact, almost all of the startups I have had the pleasure to counsel over the last 20+ years have had challenges regarding their IP and how to protect and best leverage it in the marketplace. What is even more surprising is that there is a specific step that most of these startups ignored regarding their IP that caused headaches at some point along the road to market (and beyond)… and it is not what you may think.

(more…)

Pivot Health wants to change the way healthcare professionals find jobs

Pivot Health wants to change the way healthcare professionals find jobs

Photo: Boarding1Now, Getty Images | MedCity News

Today marks the launch of a new startup: Pivot Health, which is looking to disrupt the traditional healthcare staffing market.  The Seattle-based company seeks to help healthcare professionals advance their careers. Its platform also helps employers (like hospitals) find premiere talent.  “Healthcare is the fastest growing labor market in the country and also the most inefficient,” cofounder Simon Frey said in a recent phone interview. “We are transforming how clinicians find jobs and how hospitals connect with talent.”Here’s how it works: Prospective job seekers can set up a profile for free on the startup’s website. Hospitals that use the site to make a placement have to pay Pivot Health a fee of 15 percent.

(more…)

Insurance navigator for freelancers and self-employed closes $23.5M Series B round

Insurance navigator for freelancers and self-employed closes $23.5M Series B round

Photo: Larry Washburn, Getty Images | MedCity News

Stride Health, a digital health business that identified a gap in the insurance benefits market for the self-employed and part time workforce, has closed a Series B round to grow the benefits network for these employees.  F-Prime Capital led the round with existing investors Venrock and New Enterprise Associates also participating alongside new investor Portag3 Ventures. The new capital will support the expansion of Stride Health’s benefits offerings.The company also plans to increase staff from 50 to increase the reach of the business to help more self-employed workers by boosting its marketing, product development, design and engineering teams.

(more…)