Several companies dealing with cryptocurrency platforms are based out of Switzerland and they may become eligible for banking services, akin to what other businesses are entitled to. This has been an issue as the regulatory environment for such businesses is favorable in this country, but many banks here have refused to grant accounts to such firms. Earlier this year, several economic and political officials have been exerting their influences to overcome these obstacles for such companies.
Switzerland is at crossroads now in terms of this business segment and the financial services they need. Most banks here have not been extending their service to startups in this sector, which is affecting the growth of the sector and the different businesses that are coming up in the crypto valley here.
Some financiers and policymakers who are farsighted are pulling up their sleeves and are working on solutions to break this situation. Heinz Tannler is one such official, being finance director of Zug, which is the home of the crypto valley in the country. He stated that he hoped that regulators and politicians will get together to remove such obstacles so that crypto companies would be able to avail of banking services in the country like other businesses.
Relationships by the end of the year between these two sectors would be clarified hopefully. As Malta as well as Singapore are active and are making attractive offers such companies, if the access to bank services is not extended to this sector, it would become a competitive disadvantage that would also lead to loss of business in this sector. The central bank and federal government officials have stated that they are willing to help. National institutions need to resolve this matter quickly.
Not only foreign companies but also Swiss companies are setting up cryptocurrency platforms. Many offer different payment options and flexibilities of using online payments. My Vanilla is a prepaid card option that can help people to track their account finances conveniently. However, overseas bank account transactions always bring in additional fees. Local bank services would certainly help such companies to offer more lucrative benefits to local customers.
Financial institutions traditionally are under pressure to offer regular services to startups in this segment. The bottleneck became acute when the ICO craze went up to $1.46 billion in the country. The token sales in this year from May have nearly doubled.
Many representatives in the country of this sector warn that, in the absence of finding banking services here, many companies will look for better conditions elsewhere. If such startups are deprived of banking assistance it is akin to killing the goose that lays golden eggs. Many companies are already seeing Gibraltar, Malta and Singapore to be more favorable venues as these countries have more favorable banking policies for cryptocurrency businesses.
Even though much can be done with cryptocurrencies, paying salaries and meeting expenses like rent still need the involvement of the traditional banking sector. Also, the need for lucrative interests and deposit options for crypto and fiat currencies will help many people maximize their earnings on cryptocurrency platforms.