As bitcoin surges past $50,000, the Swiss crypto broker is temporarily gatekeeping who can open an account to trade cryptocurrencies.

Traditional finance opened the floodgates to digital assets this month when Tesla pledged $1.5 billion to bitcoin and BNY Mellon laid the groundwork to begin holding, transferring, and issuing cryptocurrencies. Bitcoin, the most widely-traded of thousands of cryptocurrencies, surged past $50,000 for the first time in its 11-year existence.

That means buzzing dealing rooms for firms like Bitcoin Suisse, which offers trading as well as custody of digital assets including bitcoin. The Zug-based crypto broker is warning potential clients that they may have to wait as long as six weeks to be able to open an account, according to a notice on its website. 

Winnowing Demand

It is also trying to winnow potential clients by lifting the minimum needed to get in the door: private clients must put up at least 15,000 Swiss francs ($16,850) and institutional ones 150,000 francs, Bitcoin Suisse said. A spokesman said the measure is temporary due to high client demand.

«As we currently have a very high number of new account sign-ups, you may experience some delays,» the eight-year-old start-up said. «While we understand that you would like to begin using our services as soon as possible, we would like to inform you that waiting times for account requests have increased to four to six weeks.»

Fast-Tracking Fee

For those eager to get in the door sooner, Bitcoin Suisse is offering an expedited procedure for a one-time 250 franc fee, it said. «As requested by numerous prospects, we have also introduced a fast-track onboarding option in order to process onboarding requests faster where time is critical,» the demi-unicorn said.

Led by CEO Arthur Vayloyan, the company is storming towards a double-digit million profit for 2020 after trading volume and new accounts surged. Bitcoin Suisse expects its bank guarantee to hit 100 million francs in coming months, more than double from last autumn. 

Vayloyan and Bitcoin Suisse's co-founder Niklas Nikolajsen, both ex-Credit Suisse bankers, are seeking a Swiss bank license. The company raised 45 million francs early last year, including from former Vontobel top banker-turned-investor Roger Studer.

 By Katharina Bart and Samuel Gerber