In a bold move, Hypothekarbank Lenzburg became the first Swiss commercial bank to provide services to cryptocurrency and blockchain businesses.
Swiss banks have previously said that crypto-purses and other virtual currencies have no appeal, despite the strong upward trend in prices in the cryptocurrency market.
Against all odds, Hypothekarbank Lenzburg has recently announced its intention to accept the virtual currency and Blockchain accounts. Launched 150 years ago, the financial institution has become a mortgage service provider.
Bitcoin.com said Marianne Wildi, the CEO of Hypothekarbank Lenzbug, reading as follows:
“As a bank committed to technology and pursuing a strategy of cooperation in the field of financial technologies, the collaboration with the young sector of cryptocurrency companies and Blockchain in Switzerland is also a question of credibility . “
Wildi pointed out that the money laundering problem in the cryptocurrency industry and Initial Coin Offering (ICO) was the main reason why the bank was following the global trend of Swiss financial institutions. Hypothekarbank Lenzburg has “very accurately” examined the risk and compliance dilemma, and has inquired of the Swiss Financial Market Supervisory Authority. (FINMA) before making a decision.
It concluded that a rigorous due diligence process would be required prior to any business assumption related to digital currencies. This measure is very judicious. The Swiss canton of Zug has become a Crypto Valley , an ecosystem of technologies related to Blockchain and crypto-currencies. But the restrictions of the banks force the Swiss crypto-stock exchanges to migrate to foreign regions.
A banking trend?
The partnership with Geissbühler, Weber & Partner AG, also played for the virtual currency industry. This collaboration aims to ensure that new accounts receivable work perfectly.
Wildi commented on this partnership by saying:
“They already have a lot of cryptocurrency know-how and analyze customer inquiries about legal consequences and backgrounds. After due diligence, they make a recommendation and the decision follows. It is true that the customer review process is more involved in such relationships, but it does not make any difference to other customer relationships as long as the compliance processes must work in an irreproachable manner anyway. “
Bank Frick of Liechtenstein, for its part, sees no problem of compliance or risk by working with cryptocurrency companies. She continues to process several crypto-currencies, namely Bitcoin, Bitcoin Cash, Litecoin, Ripple and Ethereum.
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