In a story published on June 6th, Finews.com reported that Hypothekarbank Lenzburg is the first bank to formally open up towards cryptocurrency projects in Switzerland. They will offer business accounts for local blockchain and cryptocurrency companies. Being a smaller bank does not stop this technology-based banker to take charge and lead the market. In the words of Marianne Wildi, CEO of Hypothekarbank Lenzburg, “we are already collaborating with the fintech industry, we are also receptive to the young crypto and blockchain scene in Switzerland.”
Swiss overseer FINMA (Financial Market Supervisory Authority) is also aware of the decision. Moreover, Marianne Wilde has claimed that the potential risk concerning cryptocurrency adoption is also being taken in consideration. Prospective hiring to screen the blockchain applications and perform due diligence checks of the client’s background are installed. Geissbuehler, Weber & Partner who are the compliance experts with experience in the cryptocurrency sector have already been appointed to analyze client requests.
Creating a blockchain business account with Hypothekarbank Lenzburg is more expensive than a regular corporate Swiss Bank account. The practice of creating the blockchain accounts is new and will implement the unique modular solution of the bank. This solution enables API communication directly with the bank, and will provide access for fintech companies to share the responsibility and profits generated by the crypto and blockchain industry.
Evolution of cryptocurrencies in Swiss Banking
Back in April 2017, the Falcon Swiss Private Bank released the “Blockchain asset management service” by adding ETH, LTC, and BCH. It was the first Swiss private bank to provide crypto asset solution to its clients. The bank was offering Bitcoin services via Falcon, allowing clients to use their cash holdings. In addition to Falcon, there are other banks emerging in crypto sectors; the Abu Dhabi – owned wealth manager and Bank Frick in Liechtenstein. However, the Hypothekarbank Lenzburg is the first nation’s bank to debut corporate accounts for blockchain firms in Switzerland.
Despite the cruel crypto legislation in Europe that regulates blockchain business models, banks like Hypothekarbank Lenzburg looks more receptive. Reports also suggests, that crypto startups found it hard to open a business bank account within Switzerland as well, often going to Lichtenstein because of their crypto-receptive attitude. Looking at the growing number of launch in crypto firms, Switzerland appears to pursue the virtue of cryptocurrency market. Switzerland may become the crypto nation by 2020, and Zug will most likely be the capital.
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