Swiss regulators are currently making a greater effort to provide clear regulations for the banking industry to ensure that cryptocurrency-related projects can remain fully functional within the country. The decision comes in response to a recent trend in which cryptocurrency startups have begun migrating out of the country after two major banks started refusing them business.
If Swiss banks continue their strict stance on cryptocurrency businesses, Switzerland will most likely lose business to offshore rivals.
According to Reuters, Switzerland is currently losing business to their neighboring nations—including Gibraltar, Lichtenstein, and Cayman Islands—that have more crypto-friendly banks. Although the cryptocurrency industry is currently small in comparison to the traditional finance and banking sector, it’s growing at an extremely fast rate. According to local officials, Switzerland’s cryptocurrency community currently employs hundreds of people.
Despite the growth of the cryptocurrency community and emergence of “Crypto Valley,” a town located at the Swiss Canton of Zug that is home to approximately 200-300 cryptocurrency-related businesses, Switzerland’s tough banking laws pose a large threat to the community.
Heinz Taennler, Zug’s finance director mentioned that these cryptocurrency-related startups may choose to leave the country if they have inadequate access to the banking system. Without a proper bank account, these businesses will cease to survive.
“All their banking relationships are going to Lichtenstein,” said Taennler to Reuters. “These are hundreds of jobs that have been created, and every job is important.”
Thomas Moser, a member of the governing board at the Swiss National Bank (SNB), mentioned that some cryptocurrency startups had even requested for the Central Bank to intervene with the situation.
“They raised concerns about problems with opening bank accounts which was a worry for them and asked for help,” said Moser to Reuters. “I said this was not something the SNB dealt with, but they should speak with FINMA.”
FINMA, the Swiss Financial Market Supervisory Authority, has spoken to SNB and the banking association to discuss the different approaches necessary to ensure that cryptocurrency startups are not hindered by the existing rules from the banking industry.
“We would not want to close the door on the opportunities that such innovation (cryptocurrencies) might bring,” said Moser.
