Switzerland Updates Regulations to be Less Restrictive
Switzerland was once hailed as the “Crypto Nation.” Recently, the country has been enforcing an increasingly strict regulation system and scaring off investors and companies related to crypto. Having plummeted from second to sixth place on a ranking system based on ICO funds, Switzerland is actively encouraging banks to begin accepting many crypto companies and their bank accounts.
As of the new initial coin offering regulations published earlier this year, Switzerland has been continuously driving away their crypto industry and its involved members, including companies and individual investors, to leave the country and seek business else. The current regulation requires AML compliance and categorizes three different types of coins, including utility, payment, and asset.
The town of Zug, one of the richest and most advanced crypto hubs in the world managed to drawn in three hundred different cryptocurrency companies within the last few years. As it stands, the government is worried that Zug-based companies will leave if regulations continue to be so restrictive. Heinz Taennler, Zug’s head of finance said that banks and their relationships are running off to Liechtenstein, one of Switzerland’s crypto-rivals.
Switzerland's cryptocurrency industries have even resorted to the SNB to provide easier methods of acquiring financial institutes ever since the new regulations were enforced. ZKB, another bank, shut down more than 20 bank accounts of crypto-businesses last year and out of 250 banks within the country, only a few have allowed cryptocurrencies to be deposited using their systems.
The country’s financial watchdog, FINMA, is completely in control of the situation. A difficult feat is further development and innovation regarding cryptocurrencies within the financial industry and maintaining robust defensive measures for investors from scams and fraudulent ICO’s. Banks could even be held responsible for any initial coin offerings that have caused issues within the country.
In a meeting between Switzerland’s leading figures, including FINRA, the SBA and the Ministry of Finance earlier this year, the SBA has implemented certain requirements to enable bank accounts for crypto-businesses as a means of avoiding scams or attempted money laundering schemes by the end of this year.