Finma grants banking licences to two Swiss cryptobanks
The Swiss Financial Market Supervisory Authority has issued two federal blockchain service providers with a banking licence and a securities dealer licence. The framework conditions for the two players are particularly interesting.
Seba Crypto AG from Zug and Sygnum AG from Zurich want to offer financial services to both professional and institutional clients. For this reason, the two companies received the corresponding licences from Finma. Even more exciting, however, are the framework conditions that Finma is imposing on the two blockchain banking pioneers.
An open secret
Although FINMA's decision recognises the potential of new, innovative technologies such as cryptocurrencies on financial markets, it wants to enforce the generally applicable rules of the financial market regardless of the underlying technology. Cryptos, blockchains and the like must not be allowed to circumvent the tried-and-tested provisions of the Swiss financial market simply because they are new.
FINMA wants to pay particular attention to combating money laundering and terrorist financing - these rules would also have to be applied to blockchain-based business models, as anonymity entails considerable risks.
No more cryptocurrencies
On paper, this means that Swiss blockchain banks with a banking licence will now manage a digital currency, but not a cryptocurrency per se. The following Finma provisions lead to this conclusion:
- When tokens are transferred, information on the ordering party and the beneficiary must also be transmitted - as is the case with any conventional banking transaction.
- Cryptos may only be sent to and received by previously identified customers and their wallets. Federal cryptobanks may not accept tokens from or send tokens to other institutions and their customers.
Completing the perfect bank profile
For all those suppliers of banking services that are already active on the financial market, these regulations should not pose any problems in principle. This is because such companies usually have a complete portfolio of services that are subject to the equivalent regulations - namely the generally applicable financial market regulations of conventional banking.
Another interesting point is the fact that banks currently see cryptocurrencies more as an investment instrument with high speculative potential and less as a common means of payment. A regulated process for cryptos and blockchain banks could have a positive impact, as regulation will stabilise or even increase the value of the currency. This could ultimately lead to increased acceptance of digital money as a means of payment.
When I'm not stuffing my face with sweets, you'll catch me running around in the gym hall. I’m a passionate floorball player and coach. On rainy days, I tinker with my homebuilt PCs, robots or other gadgets. Music is always my trusted companion. I also enjoy tackling hilly terrain on my road bike and criss-crossing the country on my cross-country skis.