Swiss Bankers Ease Access for Crypto Startups to Prevent Mass Exodus

Published at: Sept. 21, 2018

The Swiss Bankers Association (SBA) has issued basic guidelines for banks working with blockchain startups on Friday, September 21. As Reuters reports, the measure was taken to prevent a mass crypto exodus out of Switzerland.

The document states that banks see blockchain as an opportunity for Switzerland to house financial and technology startups despite "risks," especially money laundering. Due to a significant increase of crypto-related companies based in the country, the SBA has decided to provide a road map for banks to open their corporate accounts.

The guidelines divides blockchain companies into two large groups: those with and those without Initial Coin Offerings (ICO). Blockchain companies without ICOs should be treated like other small- and medium-sized companies, and will be obliged to accept relevant Swiss regulations and apply them to their business models.

The second group includes blockchain startups with ICOs who issue tokens either in fiat or in crypto. Companies whose ICOs are funded via digital coins will have to comply with stricter rules and fall under the Swiss AML and KYC laws.

The SBA guidelines will treat the acceptance of cryptocurrencies under ICOs as a “spot transaction.” As per the scheme provided by SBA, ICOs funded with fiat are placed under the same rules as blockchain companies with no ICOs.

According to Reuters, the move comes amid a recent exodus of crypto-related startups who have failed to get access to the Swiss banking sector. As the news agency has learned, only a few of almost 250 local banks have allowed to assets raised via crypto to be stored.

Moreover, two of them have withdrawn their services for blockchain-related companies. For instance, Zuercher Kantonalbank, the fourth largest Swiss bank, has closed more than 20 blockchain-related accounts, Reuters reported in July.

Under these unstable conditions, the new guidelines might help to create a dialogue between banks and crypto startups more simple, according to SBA strategic adviser Adrian Schatzmann:

“We believe [...] we’ll be able to establish a basis for discussion between banks and innovative startups [...] facilitating the opening of accounts.”

Switzerland is home to dozens of crypto-related startups, situated mainly in the canton of Zug known as Crypto Valley. Based on Reuters data, the total number has now climbed up to 530 firms.

As Cointelegraph reported earlier in June, Hypothekarbank Lenzburg has become the first bank in Switzerland to provide business accounts to blockchain and cryptocurrency companies.

Tags
Bitcoin
Tokens
Banks
Switzerland
Aml
Kyc
Ico
Startups
Crypto Valley
Related Posts
ConsenSys’ Ajit Tripathi: ‘Rebellious Teenager’ Crypto Is Maturing
This interview has been edited and condensed. Cointelegraph had the opportunity to speak to ConsenSys’ Ajit Tripathi at BlockShow Europe 2018 about his experience leaving Wall Street for the crypto world, what new ConsenSys projects he’s most excited about, and why crypto regulation changes from country to country. Molly Jane: Could you tell us a little bit more about what ConsenSys does and what your role is there? Ajit Tripathi: ConsenSys is a venture production studio based in Brooklyn, and now we have offices in London, in about 30 countries, including London, Paris, South Africa, Australia, and Singapore — we're …
Blockchain / June 25, 2018
Swiss Bank Maerki Baumann Launches Crypto Custody and Trading
Maerki Baumann, an unlisted family-owned bank in Switzerland, is expanding its cryptocurrency services by introducing crypto custody and trading. Following regulatory approval from the Swiss Financial Market Advisory Authority, or FINMA, Maerki Baumann will be offering its clients the trading and custody of crypto starting from June 2020. Five crypto assets will be available at the launch Announcing the news on May 29, the Zurich-based private bank said that the launch of new crypto features comes in line with Maerki Baumann’s crypto strategy initiated in early 2019. As part of the strategy, Maerki Baumann has been offering business accounts for …
Bitcoin / June 1, 2020
Banks will be required to work with crypto, e-money and CBDCs to survive
Image a scenario where you need different messengers to send different types of messages — for example, WhatsApp for text messages, Viber for audio, Telegram for video, etc. Rather inconvenient, right? But this is exactly what happens in finance: There is no way to send both digital fiat money and cryptocurrency from a bank account without extra steps. It’s not affecting the masses just yet, but after the issuing of national digital currencies, or central bank digital currencies, in the next few years over the world, the situation is about to become complicated. We need to start looking for a …
Technology / Feb. 21, 2021
South Korea’s Democratic Party Lawmaker Urges Authorities to ‘Open Up the Road’ to ICOs
A member of South Korea’s National Assembly has called on the state to “open up the road” to Initial Coin Offerings (ICO) by easing regulations, South Korean financial outlet Economy reports October 2. According to the article, Min Byung-doo, a Democratic Party lawmaker, will introduce a project of for ICO legislation at the next round of the National Assembly. He claimed that the purpose of the new legislation is to allow ICOs while enforcing strict regulation for the negative parts of the industry, noting: "We are looking at ways to open up the road to ICO[s] while strictly prohibiting negative …
Bitcoin / Oct. 2, 2018
ItBit Set to Become First US Regulated Bitcoin Bank
Having filed its registration application in New York, ItBit is looking to become the first regulated Bitcoin bank in America. ItBit, a digital currency exchange operationally based in Singapore and with a head office in New York, looks to become the first officially regulated Bitcoin bank as they look to expand their service offering. The move would allow the company to legitimately take on a more traditional banking service role while meeting relevant legal requirements. According to Reuters, people privy to the matter expect that the application could be approved “in the next couple weeks.” The exchange appears ready to …
Bitcoin / April 24, 2015