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Swiss Bankers To Prevent Mass Exodus With Easy Access For Crypto Startups

The SBA (Swiss Bankers Association) has issued new guidelines for the banks to work with crypto startups on Friday, September 21. According to the reports by Reuters, the estimate was taken for preventing a mass crypto exodus out of Switzerland.

The document says that banks see blockchain as a chance for Switzerland to house financial as well as technology startups despite the risks. Owing to a significant hike in crypto-related companies which are based in the country, the SBA has taken its decision to offer a proper roadmap for the banks to open their corporate accounts.

The guidelines separate blockchain companies into two broad groups. The first group is with and without the ICOs. Blockchain companies without Initial Coin Offerings have to be treated like other small and medium-sized organisations and will be compelled to accept the relevant Swiss regulations as well as implement them in their business models.

The second group incorporates blockchain startups with ICOs who issue tokens either in crypto or fiat. Organisations whose ICOs are financed through digital coins will need to comply with some strict guidelines and fall under the Swiss AML & KYC laws.

The SBA guidelines will serve the cryptocurrency acceptance under the ICOs as a “spot transaction”. According to the scheme offered by SBA, ICOs financed with fiat are put under the similar rules as blockchain companies with no ICOs.

As indicated by Reuters, the move comes during a recent exodus of crypto-associated startups who couldn’t get access to the Swiss banking sector.

Furthermore, two of them have got their services for the blockchain companies. For example, Zuercher Kantonalbank which is the fourth largest Swiss Bank has closed more than 20 blockchain accounts, reported by Reuters in July.

Under such unstable conditions, the new guidelines may be helpful for creating a dialogue between bank as well crypto startups more simple.