The cryptocurrency company in Switzerland may be able to obtain regular banking services as early as this year, and the willingness of professionals from the political and economic fields has played a role. Previously, most banks in Switzerland have refused to provide services such as accounts to rapidly growing cryptocurrency companies.
Bank is expected to provide services by the end of this year
In terms of the development of the cryptocurrency industry, Switzerland is at a critical juncture, and most banks in the country have refused to provide banking services to cryptocurrency startups located in the country, which is gradually inhibiting the development of the financial technology industry.
On the other hand, some experienced financial experts and policy makers are working hard to break the deadlock, said Heinz Tannler, finance director of Zug, Switzerland’s wealthiest city, in an interview saying he expects Swiss politicians And regulators will remove this barrier in the coming months, enabling Swiss-based cryptocurrencies to collaborate with banks like other companies. He said:
“We hope to clarify this relationship by the end of this year. With the active participation in the judicial field, such as Malta and Singapore, and actively attracting the participation of cryptocurrency companies, the time is getting more and more urgent, and the channel for banking services is not available. This is a major competitive disadvantage.”
According to Tannler, the Swiss National Bank, financial regulators and the federal government will be willing to help. “We must promote some national institutions to solve this problem quickly and effectively, and it seems to be going well.”
Traditional financial institutions are facing increasing pressure to provide regular services such as bank accounts to cryptocurrency startups. According to local media reports, Switzerland received 1.46 billion U.S. dollars through ICO last year, and the amount of funds obtained by ICO activities as of May this year has nearly doubled in 2017.
break the ice
Representatives of the country’s cryptocurrency industry also said that if they do not provide banking services to cryptocurrency companies, they are likely to find suitable local development businesses. The blockchain and cryptocurrency technology expert Guido Schmitz-Krummacher is like this:
“Prohibiting cryptocurrency startups opening bank accounts is like killing a goose that lays golden eggs. Failure to provide a reliable environment for start-ups will damage the reputation of Zug as a “encrypted valley”.”
Alain Kunz, CEO of Coinlab Capital, a startup that manages blockchain assets, said: “We are seeing more and more projects now choosing Singapore, Malta and Gibraltar for business without a bank account in Switzerland. If banks and politicians don’t make decisions on relevant issues as soon as possible, some projects already established in Switzerland may be close behind, and it is very worrying that they will not be able to get the normal services of the banks.”
Some bankers and politicians in Switzerland have also taken action. In January of this year, Swiss Economy Minister Johann Schneider Ammann expressed his vision of making Switzerland an “encrypted country”. Ueli Maurer, Treasury Secretary, formed a working group with representatives of financial regulators such as the Swiss Banking Association (SBA) to try to give a solution, plan to set standards for ICO, and streamline the process of bank account opening.
The Swiss Banking Association wrote in a statement:
“We are interested in business relationships in this fast-growing field as banks and associations, and banks also believe that blockchain technology provides financial technology support for Switzerland and its industries.”
The Swiss Encrypted Valley Association also welcomed the move, saying that it is expected that “a number of Swiss banks will gradually expand their business scope.”
To date, few Swiss traditional financial institutions are willing to serve about 200 blockchain and cryptocurrency companies headquartered in Zug, including the Newcastle State Bank and the Nieuwe Vertic Bank. As well as the Lenzburg Bank, some Swiss cryptocurrency companies have also entered into partnerships with traditional financial services institutions.