Switzerland’s crypto industry has evolved into prominence, thanks to crypto-friendly regulations. However, financial institutions in Switzerland remain unwilling to fund crypto-based businesses. The Swiss crypto industry is now insisting that financial institutions provide banking services to crypto-based firms.
As reported by Swissinfo, the blockchain industry in Switzerland, which consists of approximately 750 startups, fails to get enough funds from financial institutions or banks. Blockchain entrepreneur Herbert Sterchi stated that it is difficult for professionals in the crypto industry to get bank accounts, and they have to travel to Portugal and Estonia to do the same.
“The hype and scam-era are over. We are now seeing products that have been building up for the last two to three years, reaching maturity. We are seeing the big tech players coming out of the shadows to drop anchor.”
The leaders of large scale cryptocurrency industry believe that the bearish run in 2018 managed to eliminate the fraudulent firms, which stifled the essence of innovation. One of the most eminent tech players, Facebook, jumped into the crypto space by registering its Libra Network in Geneva thereby establishing a more “mature” and viable crypto outfit in Switzerland. Haudenschild said that the fact that Facebook chose Geneva over any other place speaks volumes of the stability of the crypto industry in Switzerland.
Despite the evolution of the Swiss crypto firms and the efforts by the Swiss Bankers Association (SBA), basic banking services have been rendered unavailable to an industry which has time and again proven itself to be a major part of the global financial system.
As reported earlier, G7’s Financial Action Task Force (FATF) warned that crypto assets will not be allowed to become “the equivalent of secret numbered accounts” referring to the confidential accounts commonly offered in Switzerland. US Treasury Secretary, Steve Mnuchin, stated that this was FATF’s attempt to keep a check on crypto-related firms to implement anti money laundering laws and fight the financing of terrorism.
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