The concerns that prevented Swiss bankers from accepting the business of crypto firms are fading, research conducted by finews.com showed. Even the big two seem to have opened their doors slightly.
The frustration vented came from someone in the know: «The difficulty for a crypto fintech to find a banking partner is the main reason why the ambitions of Zug’s Crypto Valley haven’t come true so far,» Niklas Nikolajsen told finews.com last month. Nikolajsen is founder and chairman of Bitcoin Suisse, a broker and the biggest company in Crypto Valley, the blockchain cluster in Zug.
Now the ice is thawing – the Swiss banking industry is opening up to the blockchain business. Even the big banks, UBS and Credit Suisse, among the most reluctant to deal with the startups, seem ready to provide crypto firms with a business account under certain conditions.
One of the blockchain entrepreneurs in Switzerland told finews.com that only a small minority of banks today remained completely opposed to dealing with the crypto firms.
UBS Directives
Switzerland’s No. 1, UBS, has issued a factsheet and directives that give guidance for how its staff should deal with blockchain companies and sellers of cryptocurrencies. Relationship managers are required to stick to these rules, according to sources at the bank. UBS has built two teams of experts that deal with the blockchain companies.
The company of course is well aware of the risks with the anonymity surrounding blockchain transactions. It is hard to find out for instance who the rightful owner of a traded coin or token is. Cryptocurrencies attract not only the hip young business folks but also shady figures with money to wash. This obviously was the main reason why the Swiss banking industry kept its distance for such a long time, easily explicable with the not-so-distant memories of accusations about money-laundering.
Credit Suisse: Very Careful Approach
Credit Suisse remains reluctant to touch the business with crypto firms. Thomas Gottstein, the head of Switzerland at the Swiss No. 2, recently said the bank treated that business with utmost care: «We look at each application in great detail.» Still, the bank has provided crypto startups with business accounts, according to sources familiar with the issue. Hence, even Credit Suisse isn’t treating crypto as a no-go anymore.
CEO Gottstein won’t rely solely on the crypto guidelines issued recently by the Swiss Bankers Association. The leaflet was published with the intention to help member banks in dealing with applications for corporate accounts.
Early Movers
Previously, Zurich-based private banks Maerki Baumann and Falcon as well as regional lender Hypothekarbank Lenzburg had been openly eyeing up the crypto business. Geneva-based UBP also had opened accounts in connection with crypto transactions, according to a report by «Le Temps» (in French) newspaper.
Representatives of the Crypto Valley say that the banks still remain reluctant to do business with firms that only have equity in digital currencies. Foreign firms that have a foundation only in Switzerland equally get rejected. «But that’s no reason to reproach the banks,» one insider said.
