Switzerland-based firm Smart Valor is one of the few blockchain startups to win approval from Swiss regulators to operate in the financial market, according to a report by Reuters.

It  has plans to launch an online platform for alternative investments such as cryptocurrencies in the last quarter of this year. The startup is also looking to apply for a licence to operate a bank and offer securities investments by the first semester of next year.

VQF will supervise Smart Valor

Swiss regulatory body Financial Services Standards Association (VQF) will be in charge of supervising Smart Valor’s anti-money laundering (AML) compliance giving the startup greater credibility among investors.

In spite of Switzerland having made a name for itself as crypto and blockchain friendly by setting up Crypto Valley in the city of Zug, most cryptocurrency and blockchain firms are not yet officially regulated. Regulatory ambiguity and the lack of proper supervision has led local banks to cut off most startups’ access to financial services.

Tokenisation transforms finance

Smart Valor CEO Olga Feldmeier has praised the VQF’s decision and explains that previously, alternative investments were only available to a reduced “elite of high-net-worth individuals and institutional investors. Tokenisation transforms the way people own things, improves liquidity, and makes these investment opportunities accessible to a broader audience of investors.”

The startup released a statement saying that after winning the banking licence, its VALOR platform will expand its offering to asset-backed tokens, including equity in blockchain companies, blockchain-related infrastructure projects, real estate, cryptocurrency funds, venture capital, and private equity funds.