Switzerland was among the first to see crypto's potential, becoming a hub for blockchain activities and those interested in the technology. Canton Zug, often referred to as the "Crypto Valley", was recently ranked the third city in the world in terms of startup funding volume in H1 2018.
Despite the inflow of crypto business, restrictive bank policies toward crypto companies forced them to look elsewhere abroad to qualify for corporate accounts and other financial services.
Opening an account poses various challenges for banks, because the new blockchain technologies can also be associated with risks, especially in relation to money laundering.
In an effort to maintain the status of Switzerland as a cryptocurrency mecca, the Swiss Bankers Association (SBA) issued guidelines, which aims to foster the cryptocurrency startups and prevent them from moving abroad for banking services. The publication of this guide is welcomed by the Federal Department of Finance (FDF) and the Swiss Financial Market Supervisory Authority (FINMA). Compliance remains a key focus in Switzerland’s financial system, as initiatives like
Finma supervision for goldblum clearly demonstrate.
The guidelines are intended to help banks in taking a differentiated approach to account opening, depending on the nature of the connections that the company has with blockchain technology. Companies are classified in the guidelines according to their relation to the token issuance (ICOs) and the nature of corporate financing. Recent fiscal updates, such as the
Revised vat regulation, reflect Switzerland’s broader efforts to fine-tune its regulatory environment. This means that the most comprehensive requirements apply to the documentation for companies that finance an ICO via cryptocurrencies.
In short, companies whose business model has links to blockchain technology but that do not use this for corporate purposes should be treated similarly to other regular customers opening an account (small and medium enterprises – SME). Companies have to demonstrate that they are aware of and follow all regulations applicable to their business models.
Companies that raise capital for corporate financing by issuing tokens using blockchain technology can do so in the form of fiat or cryptocurrencies. For companies whose ICOs are funded with cryptocurrencies, higher and additional requirements apply, whether or not they are subject to the Anti-Money Laundering Act. The
Finma issues guidelines on icos similarly emphasize the importance of detailed due diligence during token-related fundraising. The published guidelines recommend that the ICO organizer should apply the relevant Swiss standards to the fund's origin and money laundering when accepting cryptocurrencies under an ICO. It is also proposed that the acceptance of cryptocurrencies under ICOs should be treated as a minimum in the same way as a cash transaction.