The Swiss bank UBS may tighten trading rules for its 61,000 staff to buy and sell cryptocurrencies, finews.com has learned.
Zurich-based UBS has been cool to scathing on cryptocurrencies, with its Chairman Axel Weber arguing last month that tokens like bitcoin aren't real money.
Banks like UBS face a tidal wave of interest from clients, and are grappling with how best to respond to the threat that digital currencies pose for established financial players. The Swiss bank has given a small indication, in a directive to its investment bankers.
«Please note that any activity in cryptocurrencies that you undertake now may be subject to additional rules and requirements in the future, for example pre-clearance or holding period requirement,» UBS wrote in a memo to staff, an excerpt of which was seen by finews.com. The bank confirmed the contents.
Personal Dealing
To be sure, UBS has lauded the blockchain technology which underpins coins, but warns its clients from investing in them, arguing that they are without intrinsic value. Demand in tokens remains high, even as prices veer wildly and regulators begin to clamp down on trading.
The Swiss bank doesn't currently hold staff's crypto trading to the same reporting obligation as those for stocks, bonds, or others. These direct investments are generally subject to pre-approval, or a minimum holding period when staff choose to sell.
Silent on Cryptocurrencies
«At present the global policy on personal investment is silent on cryptocurrencies and thus disclosure and pre-clearance is not required, except whereby cryptocurrency is the underlying of a financial instrument that would ordinarily require pre-clearance,» UBS said on personal account dealings.
