Swiss Crypto Bank Startup Expects to Receive Banking, Securities Dealer License in 2019

The CEO of Swiss startup SEBA Crypto AG said in an interview that five “large asset managers” from both Germany and abroad have shown interest in their cryptocurrency bank, Swiss financial media outlet Cash reports Nov. 12.

Back in September, the company had raised $103 million to set up a bank offering cryptocurrency-related services. At the time, CEO Guido Bühler had noted that the bank sees itself as a bridge between cryptocurrency assets and the traditional financial world.

In the November interview, Bühler noted that SEBA Crypto AG expects to receive a banking and securities dealer license from Swiss financial market regulator FINMA in the first half of 2019. That license would allow the firm to conduct crypto trading and investments business for other banks and qualified investors.

In September, SEBA had noted that it planned to start to expand its operations into major financial hubs beginning with Zurich in 2019.

According to Bühler, SEBA now intends to raise further growth capital of up to 200 million francs ($206 million) via an Initial Coin Offering (ICO). The CEO explaining the company’s goals, also noted that SEBA wants to offer custodian bank functions, going beyond the digital storage of crypto assets:

“As a general rule, crypto assets, just like investments in stocks and bonds, must be vested with our custodian bank function to the regulator.”

Earlier in November, FINMA had advised banks and other financial institutions via a confidential letter to estimate risk coverage for cryptocurrencies at 800 percent of current market value. The relatively high valuation suggests that the regulator views the investments as very volatile.


Source
Author: Max Yakubowski
Image Credit

Swiss Banks to Welcome Cryptocurrency and break Singapore’s crypto dominance

Switzerland businesses are urging their government to allow banks in the country to add cryptocurrency transaction system, says the Financial Times.



In an exclusive interview to the economic publication, Crypto Valley’s Heinz Tannler says,

“We hope to clarify relationships by the end of the year at the latest. Time is pressing – other jurisdictions such as Malta and Singapore are very active and making a lot of effort to attract these companies. The lack of access to bank services is a significant competitive disadvantage.”

The environment in Switzerland is primed for virtual currency transactions, and it is only the government and regulatory restrictions which are preventing the booming of cryptocurrency businesses in the country.

Waiting for “Competitive Advantage”

The alpine country is already an established destination for traditional banking, with a large number of global and local institutions having set up their operations here. There already exists a mature banking ecosystem, infrastructure and necessary talent pool for optimized banking services in the region.

Besides, their reputation precedes them as an exclusive banking system, which fiercely protects the identity of their account owners. Hence, cryptocurrency‘s philosophy is already a part of the banking culture in Switzerland. Thus, all that the country’s administrators will have to do is to allow banks to accept the digital currency processes.

Thus far, however, the country has resisted such a move, despite 2017 being the year where Switzerland saw the second largest volume of ICO funds in the world.

Money Laundering Fears

If Swiss banks begin to accept crypto’s, then they will be on par with the pro-crypto environment in places like Singapore and Malta. These nations have built the ecosystem for such transactions and are attracting businesses in large volumes.

The laws here are custom-made for the easy use and adaptation of cryptocurrencies in their economies. On the other hand, the current banking laws in Switzerland are limiting such adaption as they follow traditional transaction system and thus fail to match the expectations of crypto industry.

However, the biggest road-block for Switzerland to permit use of cryptocurrencies is the fear of money laundering. Tannler says,

“I can understand that banks are careful with respect to ‘know your client‘ and anti-money laundering. But experts reckon the danger of money laundering is lower than in other sectors of the finance industry.”

Things are beginning to change at this level as well, says Tannler, “We have to push certain national institutions to resolve this problem quickly and effectively, but that now seems to be going well,” Tannler shared in the interview.

The first of these changes towards mainstream cryptocurrency use was evident on June 19, 2018. The FINMA has for the first time allowed a company, Crypto Fund AG, the “license to distribute investment funds.” The last previous such helpful laws for cryptocurrency use in the country was in early 2018, when FINMA set up ‘regulatory guidelines’ for ICOs.

Zug, is the capital of cryptocurrency movement in the country and has adopted various technologies to take this forward. It has even explored of the blockchain technology in its voting systems.

By introducing changes, Switzerland has the opportunity to increase its presence in the crypto industry and improve access in the banking services for businesses which are based on cryptocurrency and blockchain.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author: Pushpa Naresh
Image Credit

Don’t forget to join our Telegram channel for Crypto, Business & Technology news delivered to you daily.

 

Crypto Assets Could Reduce Demand for Central Bank Money: IMF Director

The role of Cryptcurrencies in the evolution of money remains a valid debate which has lingered for the best part of the last decade

The role of cryptocurrencies in the evolution of money remains a valid debate which has lingered for the best part of the last decade. How the emergence of digital assets will affect the existing monetary system that is upheld by central banks is a subject that is attracting a lot of attention.


Join in the fun and play on the world’s First Hybrid on-line Casino with BTC and Fiat currency payments. Check on-line for latest promotions


Cryptocurrencies represent digital means of transaction in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

An Evolutionary Process

While central banks emerged to introduce a credit-based relationship between the central bank and citizens (in the case of cash) and between the central bank and commercial banks (in the case of reserves), crypto assets are introducing a different narrative to the concept of money. Rather than credit relationships, or entities of liability, crypto assets are a representation of a kind of commodity money.

Based on the intrinsic qualities of digital assets and the various solutions that they tend to offer to the fintech industry, Deputy Director of the IMF’s Monetary and Capital Markets Department, Dong He perceives that crypto assets may one day reduce demand for central bank money.

He said :

“As a medium of exchange, crypto assets have certain advantages. They offer much of the anonymity of cash while also allowing transactions at long distances, and the unit of transaction can potentially be more divisible. These properties make crypto assets especially attractive for micro payments in the new sharing and service-based digital economy.”

Don’t forget to join our Telegram channel for Crypto, Business & Technology news delivered to you daily

The Challenges of Cryptocurrencies

There have been criticisms about cryptocurrencies in their capacity to function as a dependable medium of exchange. According to He, for the time being, crypto assets are too volatile and too risky to pose much of a threat to fiat currencies. He also notes that they do not enjoy the same degree of trust that citizens have in fiat currencies. The lack of trust is related to the fact that they have been afflicted by notorious cases of fraud, security breaches, and operational failures and have been associated with illicit activities.

The situation is not hopeless for crypto assets as technological innovations and continuous development could go a long way in addressing the above mentioned deficiencies. Such is the more reason why He believes that central banks must learn from the underlying properties of these crypto assets in order to fend off the competitive pressure from crypto assets.

IMF Director: Banks Need to Step up

Apparently, the reality of the existence of cryptocurrencies and the solutions that they bring is becoming more acceptable. Rather than the fierce resistance and negative energy that existed between the cryptosphere and traditional institutions, there appears to be an increased level of acceptance between both sectors.

As noted by He, the onus now lies on the central banks to rise up and take steps that will enhance the effective coexistence of both sectors of the monetary ecosystem. This he says can be achieved by striving to make fiat currencies better and more stable units of account, while government authorities work to regulate the use of crypto assets. Finally, He suggests that central banks also need to make fiat currency more attractive for use as a settlement vehicle while considering the issuance of digital tokens of their own to supplement physical cash and bank reserves.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Source
Author Iyke Aru
Image Credit