Cryptocurrency Bank

Switzerland-based Startup Raises $103 million To Set Up Cryptocurrency Bank

Reuters reported on September 26, SEBA Crypto AG, a Switzerland-based startup, has raised $103 million to launch a bank offering cryptocurrency-related services.

The startup is reportedly handled by former UBS bankers. It has plans to apply for banking as well as securities dealer license from Swiss financial market regulator FINMA. A license will let the firm to administer crypto trading as well as investments business for other banks.

Buehler revealed to Reuters that SEBA expects to wind up a scaffold between conventional banking and the crypto industry. The startup likewise means to give corporate funding, including discussions on ICOs and other digital asset-related services to the corporate clients. Amschwand remarked on the undertaking saying:

“In Switzerland, we have the commitment from various authorities to establish a comprehensive regulatory environment for the development of blockchain technology and the sustainable, stable growth of crypto assets.”

SEBA is purportedly willing to extend its tasks into major budgetary hubs, beginning with Zurich in 2019. Financial specialists who financed SEBA incorporate such firms as BlackRiver Asset Management as well as Hong Kong-based Summer Capital, alongside different parties from Switzerland, Malaysia, Singapore, Hong Kong and China.

Prior this month, the SBA (Swiss Bankers Association) issued essential rules for banks working with blockchain startups to keep a mass crypto departure from Switzerland because of administrative arbitrage.

Per the plan given by SBA, blockchain firms without ICOs ought to be treated like other small as well as medium-sized businesses. Firms with ICOs has to follow the strict guidelines and fall under the domain of Swiss AML and KYC laws.

In August, the Maerki Baumann private bank started accepting cryptocurrency from payment received for services provided, and also those earned from crypto mining. Maerki Baumann noticed that they are not prepared to give direct cryptocurrency investments, but rather will give “specialists” to clients inspired by crypto investing.

In June, Hypothekarbank Lenzburg turned into the first bank in Switzerland to give business accounts to blockchain as well as crypto-related fintech organisations. In any case, the bank is allegedly selective in accepting new clients, and as of June had gone up against two organisations from the crypto industry.