The Swiss Bankers Association (SBA) on Friday issued guidelines to banks who may want to do business with the startups as many startups were facing problems in accessing the bank sector.
Switzerland Anti-Money Laundering (AML) rules and regulations are very delicate. The banks fear disrupting them by doing business with these startups. As the companies need to do traditional banking services to access cash and other day-to-day activities.
SBA strategic adviser Adrian Schatzmann corroborated by stating,
“We believe that with these guidelines, we’ll be able to establish a basis for discussion between banks and innovative startups, making the dialogue simpler and facilitating the opening of accounts.”
The guideline intends to help banks differentiate their account opening, depending on the points of contact the company has with blockchain technology. It further divides the blockchain companies seeking services in the banks into two categories, i.e. Blockchain companies with ICOs and Blockchain companies without ICOs
Companies without ICO will be treated as (Small and Medium sized Enterprises) SMEs and will be obliged to accept Swiss regulations. Whereas for the companies with ICOs, Stricter rules like AML and KYC will be strictly imposed.
Only 250 banks had agreed to store assets raised by crypto. Zuercher Kantonalbank, the fourth largest Swiss bank, has closed more than 20 blockchain-related accounts, Reuters reported in July.
Canton of Zug, also known as crypto valley is home to around 530 Blockchain startups. The Swiss Bankers Association sees Blockchain as opportunity even with the risks of money laundering. Additionally, it hopes that these new guidelines to alleviate and stabilize the pain for these startups.