Crypto companies turn to Switzerland over US banking problems.
22 Mar 2023
2 min read
Digital currency firms turn to Swiss banks after several crypto currency-friendly banks shut down in the US.
Crypto firms are on the lookout for new institutions to bank with following the closure of Signature Bank and Silvergate Capital - some of which have turned to crypto-friendly Swiss banks.
«We have been inundated with requests,» a consultant for a private Swiss bank, who preferred to remain anonymous, told.
He added that since the closure of banks in the US earlier in March, the Swiss institution has received more requests in a single day than ever before. Meanwhile, requests continue to come in, despite the situation around Credit Suisse Bank.
Dominic Kasli, director of marketing at Sygnum, one of Switzerland's largest banks that serves companies, confirmed the increase in requests from crypto firms. The interest mainly comes from investors who manage assets in a blockchain projects and want to diversify their crypto currency investments with a reliable Swiss partner.
«We have seen a significant increase in the number of recruitment requests from around the world in recent weeks as the problems in the banking sector have unfolded,» said Kasli.
Another executive of an unnamed European trading firm said that «non-European entities» are looking for a partner with new banks. The list of these firms includes crypto currency-focused hedge funds and venture capital firms, he said.
As the channel points out, one of the reason crypto currency companies are turning to banks in Switzerland is the country's legal framework, which is loyal to crypto currency firms. According to an anonymous adviser to a private Swiss bank, companies are coming to the country to find themselves in a «safer jurisdiction».
Switzerland set out to legalize the crypto currency market back in 2020, when it was reported that the Senate passed a range of reforms for financial and corporate law as part of the Blockchain Law. The law provided for the legalization of the crypto currency market and the blockchain industry, which would accelerate the development of the crypto currency industry in the country.
Since then, Switzerland has implemented a number of changes aimed at developing the crypto industry. The country has legalized a crypto currency fund and also tested the digital franc: from interbank, monetary, to cross-border transfers.