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Newly-minted cryptocurrency millionaires dream of a Swiss bank account. They are getting a cool reception with Geneva's traditional wealth managers, finews.com has learned.

Despite last year's «crypto winter» price slide, there are still investors booking hefty profits on trading digital assets: the so-called crypto rich. Many of these new millionaires long for the kind of discretion and nobility that a Swiss private bank conveys – like their wealthy counterparts in the paper money world.

Geneva's discreet and worldly private banks are particularly sought out by the new crypto rich – the city is home to two of the last true Swiss «banque privée» remaining, where the partners vouch for the bank's solidity with their own funds.

Substantial Sums

The dream of an account with a centuries-old Swiss wealth manager usually bursts soon after entering the discreet branches which populate Geneva's river- and lakeside area. Unlike with U.S. dollar, Saudi Arabian Riyal, or Russian rubles, most Swiss firms are overwhelmed with bitcoin and other non-cash currencies.

Arnaud Salomon, who runs crypto firm Mt Pelerin, says he hears from banks almost weekly looking for help. «The fact that the provenance of cryptocurrencies is practically impossible to establish is a huge compliance problems for banks», Salomon said.

«Most Genevan firms are simply not in a position to fulfill the requests. We could help with the compliance – but in most cases, clients have to be rejected», the blockchain expert said. Frequently, the crypto rich are looking to park substantial sums with traditional wealth managers.

«Trying Their Luck Everywhere»

The experience will be a bitter one for both banks and the prospective clients. Swiss wealth management has turned hardscrabble, with far fewer clients following the end of banking secrecy, once-juicy margins evaporating, and the cost of doing business rising sharply.

To be sure, the phenomenon isn't unique to Geneva, a private bank CEO in Zurich emphasizes: «My theory is that crypto investors are trying their luck pretty much everywhere, in the hope that one bank will eventually take their funds.»

The nub is frequently changing crypto for fiat, or legal tender. If clients go through a Swiss broker, then banks have a higher level of reassurance that the funds are legit. «It gets a little more problematic if the exchange happened in Malta or Gibralter, where standards are very different», the private banker said.

Tally of Receptive Banks