Evolution of bitcoin in Swiss banking

Most Swiss banks attempt to firmly reject the dealings that are based on bitcoin but not all of them. Pertaining to the exception to the rule, a private bank in Zurich headed by Maerki Baumann claim that it is comfortable with dealings with cryptocurrency. However, such assertion is based on the fact that these transaction should be totally grounded be strict regulatory measures and legal formalities.

Here the private Swiss bank falls short in bitcoin dealing

The managing director of the private bank in Zurich specifically told Bitcoin.com that although they allow dealings in bitcoin, it doesn’t necessary means that they are fully equipped to foster them. It means that the bank does not present solutions in managing bitcoin regulation in transaction nor do they manage the bitcoin related accounts.

Rejection from banks despite the growing popularity of bitcoin

The popularity of bitcoin means that the funds are increasing greatly from mining feats, crypto transactions and associated services. But in order to protect their assets, these transactions mostly fell prey to ultimate rejection by most of the Swiss banks.

However, with changing times, Vonobler joins hands with Falcon and distinguishes itself by lending money to propagate such investments that require dealings in bitcoin as opposed to the others.

The dichotomy of the Swiss situation

The irony lies in the fact that despite the hub of bitcoin trading Zug, funds countless crypto companies all over the world, neither of them have a Swiss bank account. This is absolutely incongruous to Switzerland’s assertion in becoming a Crypto nation that fosters its transactions through bitcoin.

The reason for this apparent contradiction might be, as the Swiss crypto fintech, Marc Bernegger, confides to Bitcoin.com the fear of black money. This crime has ruined the reputation of Swiss banking earlier and that’s why they are cautious not to repeat the same mistake again. They are ready to embrace contradiction rather than falling in to the trap of possible black money scandal again.

Bitcoin has potential

Marc Bernegger, iterates the idea that he was from the very start very optimistic about bitcoin future because he could see the inherent potential in it which would make its proponents reach the skies. He shaped his optimistic view immediately reading the paper descriptions regarding bitcoin in 2012 by Satoshi.

Because of the technological advancements we have now moved away from the world that dealt traditionally. Modern day, recent transactions are almost impossible without Bitcoin.

However when the point comes to modern day transaction, Bernegger still adheres to some of the traditional concepts of banking. He feels that no matter how much we progress and usher in to a world of cryptocurrency, we need to protect our assets too side by side. According to him Swiss banks still adhere to his reputation of safeguarding its assets.

A welcoming environment for bitcoin

Although there are no banks in Switzerland that deals in bitcoin, Bernegger is of an opinion that they will strive to create such as ecosystem that favors cryptocurrency dealings for companies. He believes that it might take six months to fully evolve the banking system of Switzerland to further bitcoin trading. In this way the bank will make their clients go in line with crypto bank accounts that can enhance their businesses.

In order to talk over the matter of granting the cryptocurrency bank accounts to the clients a round table conference was initiated. The Finance minister of Switzerland summoned the National Bank and the Banking Association to discuss on this crucial topic in the conference. The news of this conference was given by the head of communication in Finance Department of Switzerland via email to bitcoin.org.com.

A significant increase in profits from 25.7 million CHF to 44million CHF is noted from the preceding year after the country has started to accept bitcoin trading. This quotation is given by Swiss online bank, Swissquote group. So, out of all the business in the world that are bitcoin related, Swissquote group generate the highest turnover among them.

A major hurdle in Swiss companies in becoming banks

Swiss companies are acquiring certain authorizations from Finma that will enable them to function in the way crypto banks do. However the crux of the problem lies in the fact that in order to get the certificate from Finma, the companies needs an agent warrant. The payments are not securities by Finma and that’s why the assets are not secured. No company in Switzerland has a broker license at this phase of cryptocurrency.

So, in order to manage the keepsakes and services from Finma with a safeguarding measure, you need a broker license. This need which is currently not facilitated may cause hurdle for Swiss companies to operate like banks.

Managing crypto assets in banks

The Swiss banks at present cannot publicly declare how assets can be kept in banks, but it does not mean that they are not working towards it. The market will eventually come in to sight that will provide deposit services for the crypto assets that can be placed in banks as securities.

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