The Swiss stock exchange Six announced plans to establish a new market infrastructure to upgrade Switzerland's qualification as a “cryptocurrency country” and hopes to gain global leadership in digital asset trading.
Swiss Stock Exchange Six is building a cryptocurrency exchange based on blockchain distributed ledger technology. In addition to trading in cryptocurrencies such as Bitcoin, Six Exchange will also offer integrated trading services such as transaction settlement and asset custody.
Jos Dijsselhof, CEO of Six Exchange, said:
For us, it is now very clear that many things that are happening in the digital arena will not end and will determine the future of our industry.
The financial industry now needs to bridge the gap between traditional financial services and the digital community.
The digital currency system was developed as a substitute for the global monetary system and could undermine the way financial transactions are conducted. Many industry executives acknowledge that the system needs to become more specialized, transforming the system from a niche benefit to a trading and payment system that millions of people can use.
According to the Six Exchange, which is regulated by Swiss financial regulator Finma and the Swiss National Bank, it is expected that its digital exchanges will be subject to the same regulations and comply with the same regulatory standards.
The exchange said that the first batch of services is expected to be launched in the first half of 2019.
Switzerland has been at the forefront of emerging financial products, despite global suspicions.
This year, Economy Minister Johann Schneider-Ammann said that Switzerland wants to become a "cryptocurrency country." Switzerland's regulatory and tax environment has attracted Swiss cryptocurrency start-ups, while Zug, near Zurich, has advertised itself as a “crypto valley”.
In addition to plans for the Six Stock Exchange, Swiss politicians and officials are developing plans to remove barriers that prevent traditional banks from providing services to cryptocurrency companies.
Earlier this year, Finma developed ICO guidelines, and startups can sell digital tokens to investors.
After a series of hacking, asset theft and technical issues, cryptocurrency transactions began to replicate the protection measures commonly used by securities and derivatives peers.
The trading venue was initially targeted at the retail market and is now attracting institutional investors such as hedge funds, large investors and proprietary traders. Institutional investors are keen to invest in digital assets, but require higher standards of protection for the fund.
Encrypted exchange Coinbase has begun offering hosting services to investors who are concerned about the security of their assets. As one of the world's largest crypto exchanges, Huobi has a default fund to protect users from certain shocks.
At the same time, traditional exchanges are also considering targeting institutional investors who want to trade cryptocurrencies, hoping for their experience in building high-capacity, secure systems and providing asset management companies with more operational guarantees.
NASDAQ NASDAQ will provide monitoring technology to Gemini, a cryptocurrency exchange operated by the American Internet entrepreneur Winklevoss brothers.
Thomas Zeeb, head of Six Securities and Exchanges, said the challenge for the digital industry is “hosting and asset services, including asset security. The Six Stock Exchange will provide services in an integrated and secure model. In Europe, the Swiss exchange is in addition to tradition. In addition to trading and clearing services, it is also rare to operate a mainstream payment system.