Banks in Switzerland are under pressure from the populace and the government to serve cryptocurrency and blockchain start-ups more and better. Two Swiss banks severed ties with cryptocurrency startups in the country recently, and some are planning to do so.
In response to the situation by the government, there is increasing pressure on the Banks in the country, as Swiss Financial Authority tries to create better working principles for the relationship between Swiss banks and crypto-based startups in the country.
The Need for Switzerland Banks to Work with Crypto and Blockchain Startups
The recent report of the unwillingness of Swiss banks to offer banking services to cryptocurrency and blockchain startups has filtered the internet, and also the recent severing of ties by two Swiss banks with cryptocurrency startups.
Zuercher Kantonalbank (ZKB), one of the two banks, closed down all the accounts of more than 20 cryptocurrency startups, and some other bank unwilling to offer services to cryptocurrency startups.
As the situation of closed account and unwillingness to offer services trails cryptocurrency in Switzerland, there has been a massive migration of cryptocurrency and blockchain startups to the neighbouring countries of surrounding Switzerland, which has better operating conditions for cryptocurrency and blockchain firms. The enormous flood out of this in no time will deprive Switzerland of the benefits of the new virtual currencies.
According to the director of a cryptocurrency community known as Crypto Valley in Swiss Canton of Zug, that has about 200 to 300 crypto businesses, Heinz Taennler, states that cryptocurrency has provided source of livelihood for hundreds in the country who are being deprived of it due to the strained working relationship between the banks in the country and cryptocurrency startups. It was also further stated that there is no way cryptocurrency startups could operate without proper banking services.
According to Thomas Moser, the governor at the Swiss National Bank (SNB), he states that “We would not want to close the door on the opportunities that such innovation (cryptocurrencies) might bring.”
To address this situation the Swiss Finance Minister, Federal Councilor Ueli Maurer, set up a committee last month to work on a working guideline for the cooperation of the cryptocurrency and blockchain startups in the country.
Some Crypto project had attempted to obtain a banking license, to be competitive with Swiss banks, but have failed in getting it.
As the government of Switzerland attempts to create proper working code for the relationship of banks and cryptocurrency startups in the country, pressure mounts on the banks to back out of their decisions, based on the government ruling.
This situation means a victory for the acceptance of cryptocurrency in the country. With this cryptocurrency, advocates hope to spread to other countries, even as fraud issues are being resolved.
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