Bitcoin Suisse bank license bid hits regulatory roadblock
Bitcoin Suisse has spent heavily on advertising, as on this city tram, but has failed to convince the regulator of its credentials to become a bank.
/ Karin Hofer
Cryptocurrency firm Bitcoin Suisse has withdrawn its application for a banking license, in part because it failed to meet the anti-money laundering requirements of the Swiss financial regulator.
This content was published on
2 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
“The application process has shown the need for further reviews of the anti-money laundering framework and potential enhancements. Bitcoin Suisse has initiated the respective projects which, however, need more time than anticipated,” the company said in a statement on Wednesday.
The Swiss Financial Market Supervisory Authority (FINMA) said there were “various” reasonsExternal link for telling told Bitcoin Suisse that its license application is currently “ineligible for approval and that the prognosis is unfavourable. Among other things there are indications of weaknesses in the money laundering defence mechanisms.”
The company said it might re-apply for a banking license in future, but for the moment will concentrate on its brokerage, storage and other cryptocurrency services. Plans for a further banking license in Liechtenstein, which would grant access to the European Union market, have also been put on hold.
Last year, investors poured CHF45 million ($48.5 million) into Bitcoin Suisse. CEO Arthur Vayloyan insisted that shareholders still have reason to be optimistic. The company benefitted from the huge rise in value of bitcoin and other cryptocurrencies over the last few months.
“We were supremely well-positioned to take advantage when the market took a march to the north last year,” he told swissinfo.ch. “We could really profit from this event even without a banking license.”
The company, which formed in 2013, said it expects in June to announce revenues of CHF45 million last year and a CHF15 million profit – significantly higher than in 2019. In 2020 it also added 120 staff to its roster now totaling more than 200 in Switzerland and Denmark.
Popular Stories
More
Multinational companies
Azeri fossil-fuel cash cow brings controversy to Switzerland
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Bitcoin Suisse bids for crypto bank status
This content was published on
The Swiss banking landscape has experienced a dramatic thinning of numbers in recent years. The number of banks fell from 337 in 2005 to 248 in 2018, while last year saw five more banks disappear without trace. The arrival of crypto banks would provide a rare growth area for the industry. Bitcoin SuisseExternal link said…
World’s first crypto banks seen as game changer for Switzerland
This content was published on
Crypto banks Sygnum and SEBA have convinced the Swiss regulator that crypto assets can have a place in the traditional financial sector.
Switzerland officially ushers in new blockchain finance era
This content was published on
The launch of digital asset laws in Switzerland on February 1 has been greeted with a welter of activity from the growing industry.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.