Recently, the Swiss Financial Market Supervisory Authority [FINMA] have held meetings with the Swiss National Bank and some of the other country’s local banks on how to improve the present condition of cryptocurrency ventures’ access to the bank. This was in response to many crypto-companies shifting their domicile to other countries.
Swiss regulators are increasing their efforts to prevent the crypto-enterprises from leaving the country. According to the local officials, although the cryptocurrency business is rather small in Switzerland, it has increased substantially over the years and has been a large source of employment and innovation in the country.
The well-known canton of Switzerland, Zug, is also known as the “Crypto Valley” due to its 200-300 virtual currency entities that have been established in the recent years. In addition to this, the country has also expressed their support for cryptos as witnessed by the Swiss economic minister.
However, sources also explain that only a small number of Swiss banks have allowed these crypto-enterprises to work with them. This makes it difficult for larger projects from being established in the country. Due to the lack of support from larger banks, two of the smaller banks have already withdrawn from helping the crypto-enterprises leading to the crisis that the country is currently facing.
Reports also indicate that those banks who have continued to do business with the crypto-enterprises are doing so under strict conditions like charging a heavy initial assessment fee of up to $2,500 before acquiring their services.
David Henderson of the Swiss Sweetbridge foundation commented:
“A cautionary response from Swiss banks resulted in a pause or closure for most projects in the cryptocurrency space”
A statement from the Swiss Banking Association says:
“Banks are currently hesitant to open business accounts for companies with particular touch points to ICOs and cryptocurrencies – due to risks such as fraud or money laundering”
Despite a few roadblocks, Switzerland is trying to reassure the banks and encourage them to accept cryptocurrency companies.
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