Cryptocurrency Business in Switzerland
Globally, cryptocurrencies and blockchain regulatory policy remains either fragmented, vague, or nonexistent. After deep research, Switzerland took steps to go beyond regulations surrounding the blockchain industry and cooperate with cryptocurrency companies in order to create better banking solutions.
According to the Financial Times, Switzerland has been working towards opening the country’s banking market to digital asset businesses which are struggling to work with banks due to fears of regulatory violations. As a result, finalized policies regarding offering banking solutions to crypto companies are expected by the last quarter of 2018.
Bridging the Banking-Crypto Gap
On the other hand, other countries, such as Malta and Singapore, are very active and making a concerted effort to attract such digital asset companies. The challenge for Switzerland has been the banking service experience.
Moreover, the Swiss Bankers Association decided to target blockchain projects to indulge in the cryptocurrency industry. This action was appreciated but the main challenge was to maintain businesses whilst providing regulatory financial services within the industry. Lately, there was an announcement that 250 Swiss financial entities are only able to offer deposit solutions to 530 startups based in the nation's "Crypto Valley".
The key here comes in maintaining success on both sides. Businesses should depend on cryptocurrencies and at the same time they should focus on traditional financial tools, especially fiat currencies to process payroll payments and to pay bills, social security payments and the like.
Meanwhile, raising funds via initial coin offerings makes their companies unable to deposit the fiat equivalent of that funding into accounts to finance their growth.
It was known that one of Switzerland’s largest banks had closed the accounts of more than 20 industry startups due to banking concerns. That's why it might be a risky plan, but taking a risk to promote a successful future is better than remaining at a standstill.
To solve issues that might arise between cooperating banks and innovative startups, an approach of offering different services to crypto companies based on whether or not they took part in an ICO. For those without an ICO they will be managed as small or medium entities. For those that did receive ICO funding, the process will be more difficult depending on regulatory policies.
As Switzerland is particularly interested in joining the digital asset industry, it is determined to meet the banking needs its crypto services. Apart from that plan, a Swiss startup has raised over a $100 million for establishing a bank that provides services related to the digital asset industry.
Nonetheless, all efforts are geared towards managing crypto banking solutions as a way to boost funding and become a top player within the market while gaining loyal customers.