Switzerland wants to retain crypto-friendly status – banks deter startups
Called the “Crypto Valley”, the Swiss city of Zug is losing its splendour in favour of other cities and jurisdictions, as crypto currency start-ups are said to have difficulties in administration and with the government.
Switzerland is facing a problem with Bitcoin Revolution
As Reuters reported on 19 July 2018, crypto currency projects in Switzerland are feeling the pressure from banks and financial service providers that have stopped operating crypto shops in recent months.
Many crypto start-ups have moved to Switzerland after significant friendly regulations on the blockchain and crypto currency industry were introduced in 2017-18.
Swiss officials note that the local crypto currency sector is gradually growing. Although insignificant compared to the country’s globally recognized banking sector, the digital asset sector employs hundreds of people and is proving to be an important source of industry for citizens.
Despite relevant laws, Swiss banks are urging regulators to demand additional clarity and establish rules for Bitcoin Revolution scam and for crypto currency transactions before they can offer banking services.
As the Retuters report shows, Zürcher Kantonalbank (ZKB), Switzerland’s fourth-largest bank, closed bank accounts of over twenty crypto companies in 2017. CBC officials refused to comment on the nature of their decision in this regard, but claimed that no bank support is offered to former or existing crypto currency customers. Of the 250 registered banks in the country, only two companies currently allowed the payment of funds financed through ICOs.
The biggest criticism from the banks is money laundering. Banks claim https://www.onlinebetrug.net/en/ that several token issuers have failed to conduct their due diligence on the contribution of investors and are thus committing a potential crime if they allow unauthorized money to be stored.
Train loses its shine
The remarkable development of Zug as a crypto-economy is well known. The small canton with only 30,000 inhabitants is home to over 300 crypto companies. Heinz Taennler, finance director of Zug, however, expressed concern about the current state of banking support in the region and fears that crypto companies could leave Zug:
“All their banking relationships lead to Liechtenstein. That’s hundreds of jobs, and every job is important.”
Swiss Official unveils reinsurance
An official of the Swiss National Bank (SNB), Thomas Moser, explained that representatives of some cryptographic currency companies should contact the central authorities to intervene.
Moser added that the jurisdiction does not want to diminish the economic opportunities arising from the lucrative crypto currency sector or stifle technological innovation.