SEBA Crypto AG, startup company based on Switzerland is reported to have managed to raise $103 million to start a cryptocurrency bank in the country. As reported on Coin Telegraph, the bank will offer services related to digital currency when fully launched. The report also indicates that the company is headed by experts who previously worked in UBS ban namely Guido Buehler who is currently the chief executive and Andreas Amschwand the chairman.
Application for a Securities and Banking Dealer License
SEBA has already put in place plans to start the process of applying for a license and other accreditation documents that are required before starting offering the services in the country. The license will be issues by Swiss Financial Market Regulator (FINMA) after an extensive review of the startup’s goals, objectives, and the infrastructure they have put in place to offer the services.
The license will give the firm an opportunity to facilitate crypto trading as well as investments business from other qualified investors in Switzerland and abroad. In an interview with Reuters, Guido Buehler stated that SEBA main goal is to bridge the gap between the cryptocurrency industry and the traditional banking industry. The chief executive also revealed that the company would offer stellar corporate financial services such as consultations on initial coin offerings and digital asset related services.
SEBA is also reported to be planning to expand its market base to other financial hubs such as Zurich next year. Some of the investors who have invested in this project include Summer Capital a Hong Kong Based firm, and Black River Asset Management. Investors from China, Malaysia, and Singapore have also invested in the company and hope that the management team will do everything possible to ensure that the set goals and objectives are achieved.
Swiss Bankers Association Guidelines
Early this month, SBA (Swiss Bankers Association) published a number of guidelines and regulations that all banks or financial institutions working with blockchain startups are required to adhere to at all times. The guidelines are meant to prevent a mass cryptocurrency exodus to the country to stringent regulatory arbitrage.
SEBA management team has also revealed that they have received commitment from a number of financial regulators in the country to create a regulatory environment that will support its operations and promote adoption of blockchain technology.
According to SBA guidelines, all blockchain startups or companies that do not have Initial Coin Offering should be categorized and treated as medium and small sized companies. On the other hand, all companies that have ICOs are required to adhere to the set rules and regulations in the Swiss Anti-Money Laundering and KYC (Know your customer) purview.
Conclusion
SEBA Swiss startup will not be the first bank to offer cryptocurrency related services. In August, a private bank, Maerki Baumann revised its operations and allowed clients to pay for services using cryptocurrency. However, the bank noted that they did not have the required infrastructure to offer direct digital asset investments to its customers, but promised to help clients who are interested in crypto investing make informed decisions by connecting them with experts.
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