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Silvergate and Signature bank witnessed a collapse in recent weeks. - 2
The fall of major crypto service providers created a void within the crypto industry. - 3
The trend of crypto companies moving towards Swiss banks is reportedly surfacing.
The fall of several banking institutions brought shivers within the financial sector. Silvergate and Signature-like crypto-friendly banks were a great help to many crypto companies, including prominent ones. This incident put the crypto industry in a dilemma where crypto assets were rising while crypto companies were looking for banking. Some of these beleaguered crypto firms have turned to Swiss banks to quench their thirst for trusted banks.
CNBC cited industry insiders that crypto-friendly banks in Switzerland are receiving banking service requests in abundance. Traditional banking institutions generally keep their distance from crypto assets, and blockchain projects are given lack of regulatory clarity. Given Switzerland’s claim of having solid crypto regulations, companies are flocking towards the central European country.
Sygnum’s Chief Marketing Officer, Dominic Castley, also reportedly confirmed the bank is witnessing a bunch of inquiries. The onboarding inquiries worldwide have increased in the last few weeks, Castley stated while citing the recent events in the banking sector.
Sygnum is among the biggest banks in Switzerland and is also situated in Singapore. Castely said both locations were a lucrative option for crypto companies. The bank holds a Swiss banking license, and it has a capital markets services license in Singapore. This makes the institution compatible with the regulatory scope.
This is also needed to be considered that along with the US banking institutions, the Swiss banking sector is also under pressure. Especially considering the turmoil due to issues with Credit Suisse, which UBS acquired in later days.
Yet the enthusiasm of crypto companies towards Swiss banks did not have any impact. This is majorly because of the country’s regulatory situation, which seems quite supportive of crypto firms for their stable operations.
Switzerland’s effort to become a crypto hub could also be witnessed after establishing a “Crypto Valley.” It is situated in Zug town near the capital Zurich. Many crypto-related companies have already started their activities in the region.
The government also brought regulations for companies defining the usage of blockchain technology in 2021. Switzerland-based blockchain firm AgAu.io’s CEO, Thierry Arys Ruiz, said that the country has relatively stable and certain clarity on regulations. While many others believe that for crypto regulation, Switzerland has safer jurisdiction.
Source: https://www.thecoinrepublic.com/2023/03/22/swiss-banks-receiving-banking-inquiries-from-crypto-firms/