Swiss Banking finally facilitates blockchain growth.
The main Swiss banking association facilitates blockchain and banking collaborations with new guidelines.
The Swiss Bankers Association (SBA) issued a new guidance document which addresses the treatment of crypto and blockchain-related firms in Switzerland. The guidelines, which are intended for banks and financial institutions, has come in the wake of peaked interest from banks.
The Guide makes key distinctions between blockchain-focused companies seeking to raise capital through an ICOs and those who do not in a bid to increase acceptancy of one of Switzerland’s most promising sectors, whilst lowering risk involved with new partnerships.
According to the outline, companies which do not raise capital with an ICO should be treated no differently than regular Small Medium Enterprises (SMEs). A further distinction is being made between ICOs carried out with fiat currencies and those using cryptocurrencies. The most comprehensive requirements apply to the documentation for companies that finance an ICO via cryptocurrencies.
The SBA’s initiative was well received by the Swiss Financial Market Supervisory Authority (FINMA), the Federal Department of Finance (FDF), and the Swiss Blockchain community located in the Zug Valley. Reports describe this development to have been facilitated by Crypto Lab Association.
In the past three years, more than 500 blockchain and cryptocurrency start-ups have settled around Zug Valley since the country began marketing itself as blockchain-positive. But as the industry has grown, it has faced challenges integrating into the country’s traditional financial hub.
After years of Swiss fintech startups experiencing difficulties when opening corporate bank accounts, the exciting development is music to one’s ears. CEO of Hypothekarbank Marianne Wildi commented: “My onboarding team is very happy about the recently published guidelines from the Swiss Bankers Association.”
Swiss banks have shown interest in the blockchain technology underpinning cryptocurrencies but have taken their time to form an opinion on the industry, which due diligence checks were rarely performed during fundraisers a year ago and for which the long-term value still remains to be tested.
For more information, visitThe Swiss Banking Association page.