Swiss Regulators Engage Banks to Prevent Exodus of Cryptocurrency Ventures
Switzerland’s financial market supervisor, FINMA held discussions with the country’s bankers’ association and the Swiss National Bank (SNB), on how to improve cryptocurrency ventures’ access to banks. This is in response to the exit by some crypto-enterprises that are opting to move their business to other territories.
According to Reuters, Swiss regulators have been taking steps to maintain the country’s reputation as a cryptocurrency friendly jurisdiction and to prevent the departure of virtual currency projects that have traditionally had limited access to the formal financial system.
Over the years Switzerland has cultivated a reputation as one of the more cordial countries for cryptocurrency entities willing to set up shop or conduct ICOs.
In addition to having an aggregation of digital currency startups in a region recognized as Crypto Valley, the country has also expressed its support of cryptocurrencies as witnessed by the sentiments shared by the Swiss Economics Minister:
Now we have arrived at an innovative moment in the financial world. Cryptocurrencies are part of the fourth industrial revolution. We look at what possibilities can arise from it. For my part, I try to identify the opportunities, the risks and the opportunities, and decide: Is this a future business with future jobs or is it not? That’s why I support the circles that deal with it.
A few Swiss banks have already started offering Bitcoin futures and the country’s stock exchange announced plans to launch a cryptocurrency exchange.
Even large players like Bitfinex have given Switzerland a stamp of approval of sorts by considering the country as its permanent residence.
All of these factors have contributed to the crypto-nation tag that Switzerland is aspiring for. However, the real issue lies with an acceptance by the country’s bankers.
Only a small number of Swiss banks have allowed cryptocurrency ventures to do business with them making it difficult for such projects to be domiciled in the country. The number of institutions that are warm to digital currency focused business is also shrinking.
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