Swiss regulator ‘unlikely’ to approve Bitcoin Suisse’s banking license

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Switzerland’s Monetary Market Supervisory Authority — the nation’s principal monetary regulator — has made an “unfavorable prognosis” relating to Bitcoin Suisse’s utility for a banking license. 

In line with an official announcement on March 17, Bitcoin Suisse’s present utility is ineligible for approval on the grounds that “numerous components which are related underneath licensing legislation make it unlikely {that a} license will likely be granted.” As such, Bitcoin Suisse has determined to withdraw its utility.

Chatting with Cointelegraph, Bitcoin Suisse CEO Arthur Vayloyan remained optimistic, stating that the agency nonetheless has “so many choices on the desk.” He defined that the agency’s popularity for cryptocurrency storage and buying and selling has put it in a great place as institutional adoption of digital belongings grows exponentially. 

Vayloyan defined that because the agency had initially utilized for the license in July 2019, the panorama of crypto markets and the agency’s place therein has shifted considerably and that Bitcoin Suisse might apply once more, ought to it need. 

Certainly, a banking license could possibly be advantageous as safety tokens acquire traction.

As Vayloyan defined, in February 2018, FINMA launched tips for preliminary coin choices, underneath which tokens had been divided into three classes: cost, utility and asset, with the latter thought-about a safety. At present, when a agency receives a banking license in Switzerland, it additionally mechanically receives a broker-dealer license. Consequently, a agency with a banking license would be capable to interact within the buy and sale of securities, giving them a leg up within the rising digital securities house. 

“Below the idea that the safety token market takes off, it will be strategically a pity not to have the ability to totally take part in that unfolding alternative and take a share,” Vayloyan mentioned.

Whereas FINMA acknowledged that there have been obvious weaknesses in “cash laundering protection mechanisms” in Bitcoin Suisse’s utility, Vayloyan acknowledged that the agency is conscious of any gaps on this regard, and is working carefully with regulators to deal with them. “We’re as clear to regulators as we could be,” he acknowledged. 

Bitcoin Suisse is a crypto dealer and middleman headquartered in Switzerland’s canton of Zug, which is dubbed “Crypto Valley” for its preponderance of cryptocurrency- and blockchain-related firms, and progressive regulatory strategy in direction of digital belongings.

Earlier this 12 months, Bitcoin Suisse rolled out a payments solution that permits residents of the canton to pay their taxes in cryptocurrency. Initiatives with native firms and authorities together with the hovering bull market have grown the agency’s workforce by 120 folks up to now 12 months.