The Swiss Bankers Association (SBA) has announced guidelines to financial services who plan to become collaborators in cryptocurrency and DLT businesses. The guidelines contain answers to reluctant banks to support crypto startups which are considering escapes from Switzerland. The strategic adviser of the SBA, Adrian Schatzmann, mentioned that the guidelines will allow communication between banks and innovative startups easy and enhance the opening of accounts.
The guidelines describe a variety of practical recommendations for banks to allying with cryptocurrency companies. The SBA has included detailed suggestions such as know-your-customer and anti-money laundering (AML) procedures for initial coin offerings (ICOs) conducting firms to raise funds through ICOs with fiat currencies and ICOs generating funds in cryptocurrencies. Oliver Bussmann, the head of the Crypto Valley Association, said, “This will give clear and obvious concepts to both banks and startups.”
In fact, the directions have been introduced to boost anxiety among Swiss financial institutions who own partnerships with crypto firms. Banks are afraid of the circumstance that some ICO companies did not do AML checks on their contributors which violates AML rules.
Approximately 530 crypto and DLT companies have founded in Zurich and Zug and it is unavoidable for local firms to be able to access basic financial services for survival. August Benz, the deputy chief executive officer of the SBA, denoted that the positive conversation between the SBA and local financial centres will bring some impacts on the new guidelines no matter it takes some time to proceed.
Author: Jieun Lee