Switzerland is actively exploring various ways to make it easier for blockchain companies to open corporate bank accounts as the government plans to restrict those innovators from leaving the country.
As per the valid reports published by Reuters on 21st Sept., Swiss Bankers Association (SBA) is considering various measures to address what the publication explained as a departure of blockchain projects from Switzerland. Amid this, experts said in a statement that blockchain innovators making hard to access the traditional financial services sector have been pushed out just because of it.
While looking at the current scenario, the SBA issued guidelines to Swiss banks in an effort to assist all those innovators that have access to their bank accounts. With this, financial institutions (FIs) have been unwilling to provide banking services to these startups because of no proper anti-money laundering (AML) compliance in place.
Besides this, there are almost 530 blockchain startup firms based in Switzerland’s Crypto Valley and almost 250 banks in the country. However, only a few financial institutions provided deposit services for these startups that required to deposit the fiat-currency quite similar of cryptocurrencies they have raised through initial coin offerings (ICOs) as per the valid report. With this, Institutions profusely said that the companies have not adequately followed AML checks of their investors as per the source.
Out of all banks, two financial institutions offered services to crypto-based startups and withdrew their services just recently. Beginning of this year it is expected that the country’s fourth-largest bank, Züercher Kantonalbank, shut down more than 20 startups’ bank accounts.
According to the statement, SBA Strategic Advisor Adrian Schatzmann commented that the guidelines will assist those startups and prevent them from moving elsewhere to access bank accounts and other financial services.
Further speaking to the subject matter “We believe that with these guidelines, we’ll be able to establish a basis for discussion between banks and innovative startups, making the dialogue simpler and facilitating the opening of accounts.”
As per the guidelines, it contains a series of assessment that banks can finish when opening a bank account for these startups, like Know Your Customer (KYC) and AML checks for companies that have already completed their ICOs in both fiat currencies and cryptocurrencies.