Swiss holding company Crypto Finance AG closes a $14.5 million Series B funding round and plans to obtain a brokerage license.
As per the latest reports, Swiss holding company Crypto Finance AG has raised $14.5 million in its Series B funding round. The round was headed by Swiss investor Rainer-Marc Frey and Beijing-based private equity firm Lingfeng Capital. Hongkong-based QBN Capital also participated in the round. Since establishment in 2017, Crypto Finance AG has raised a total of $37.29 million.
Crypto Finance AG started the Series B back in September last year and was originally supposed to be closed by the end of March. However, the financial skepticism amid the COVID-19 pandemic led to the delay. The firm operates three subsidiaries namely Crypto Fund AG, Crypto Broker AG and Crypto Storage AG.
Crypto Finance AG CEO and founder Jan Brzezek confirmed that the fresh capital will be used to obtain a broker-dealer license from the Swiss financial regulator FINMA.
Brzezek went on to add that the eighteen-month long process of obtaining the license is finally in its last leg. Once achieved, it will enable Crypto Broker AG to co-ordinate cryptocurrency trades for larger regulated market players like banks. Brzezek is of the opinion that traditional financial institutions are often hesitant about connecting with different exchanges and brokers, but they can simply integrate their API with Crypto Broker AG’s infrastructure to trade around the world.
Talking about regulatory hurdles involved, Brzezek commented, “The U.S. is still struggling to find the common solution. We have a very good legal basis to operate in Europe and in Asia.”
He concluded by acknowledging the potential of the crypto derivatives market and hinted that Crypto Finance AG plans to foray into that space.