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Envion Attention

Bank Frick hit the headlines through its involvement in the failed crypto startup Envion, where investors stood to lose some $100 million. As Swiss daily «Tagesanzeiger» reported (article in German, behind paywall), some of the paper money from the Envion ICO was deposited in accounts at Bank Frick.

This was an unpleasant experience for Woegerer & Co. Bank Frick’s links with Envion go back to late last year. «The startup had a proper business model and fulfilled know-you-client requirements of the bank.

However that a dispute between the founders and the management would develop was something we couldn’t predict,» the bank recalls. The case did not result in any claims against Bank Frick, and Swiss regulator Finma has appointed attorneys to manage the Envion funds held at the bank.

Standard for Europe

With its history of money laundering, Liechtenstein has come under close scrutiny by the European Union, and the adoption of a clean money strategy has been a painful adaption for the banking sector, which has seen an outflow of assets to Switzerland.

«Liechtenstein has been monitored more closely by the EU than other member countries, and this has meant we have had to introduce much higher standards to avoid becoming the target of sanctions,» he said.

Thus for the new blockchain legislation in Liechtenstein, the speed of implementation was less important than direction and sustainability. The new regulations should bring solid standards, which will be recognized Europe-wide. «We in Liechtenstein would like to play a key role in establishing European Union blockchain regulations», Woegerer stressed.

Unfair Criticism?

In Switzerland the crypto community is waiting for a decision from a government working group, and banks remain wary of the crypto business sector. «We are watching the Swiss crypto startups who are actively looking for a banking partner in Liechtenstein«, the Bank Frick CEO said.

But perhaps some of the criticism has been unfair: last fall there was a crypto boom, and everyone complained in winter that bank ties in Switzerland were lacking. «However it was impossible for our Swiss colleagues to establish such structures in so short a time», said Woegerer. «One needs at least one to two years.»