Fineqia International Inc has announced that its subsidiary, Fineqia AG, has received approval of its base prospectus by the Liechtenstein Financial Market Authority (FMA) to offer ETNs collateralised by digital assets.
Fineqia AG is domiciled in Liechtenstein, a member of the European Economic Area (EEA). The EEA includes EU countries as well as Iceland, Liechtenstein, and Norway. The firm writes that it allows these countries to be part of the EU’s single market. Fineqia AG’s base prospectus complies with the European Union’s (EU) passport directive, the firm says.
The base prospectus was approved on March 23 pursuant to the EU’s Prospectus Regulation (EU) 2017/1129, for offering in the following EU member states: Austria, Belgium, Cyprus, Czech Republic, Germany, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Lithuania, Malta, Netherlands, Norway, Portugal, Poland, Slovenia, Spain, and Slovakia.
“The FMA’s approval of the base prospectus will allow us to provide new investment products and furthers our objective to bring innovation to the digital asset industry,” says Fineqia’s CEO Bundeep Singh Rangar. “The approval process was rigorous, and we’re pleased to have met the regulator’s criteria for the approval of a base prospectus.”
Fineqia AG’s base prospectus outlines underlying digital assets including fungible tokens such as Bitcoin, Ethereum, Cardano, Polkadot, Uniswap, Stellar and Tezos, as well as non-fungible tokens (NFTs).
Exchange Traded Products (ETPs) are an overall category that can include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs), each of which require specific approval, the firm says.
Liechtenstein has been selected as a jurisdiction by other ETP issuers including Germany’s DDA ETP AG (formerly Iconic Holdings), Guernsey-based DMAP PCC and SA1 Issuer Limited, Switzerland-based Bitcoin Capital AG and Pando Asset AG, and the Liechtenstein-domiciled VanEck ETP AG.
Fineqia’s research revealed that ETPs with underlying crypto assets worldwide had a 1 per cent increase in assets under management in February reaching USD28 billion, as the crypto market value increased by 1.5 per cent during the same month.
