Swiss Regulator Approves Two Banking Licenses For Blockchain Companies

Swiss regulator for finance matters FINMA has officially granted two banking licenses for two blockchain companies and we take a closer look today in the coming altcoin news below.

The blockchain projects around the world have been looking for approval from the regulators and they also seek for concrete guidance in the past few years. The Swiss regulator finally granted such permission to two blockchain businesses. The regulatory strides are not likely to impact directly other jurisdictions but they will impact more how regulation is formed everywhere else. Only time will show how these regulations will impact innovation. The FINMA regulator issued banking licenses to both Sygnum AG and SEBA crypto AG with multiple stipulations on their operations. The term Virtual Asset Service Providers refers to blockchain service providers such as exchanges, trading platforms, and wallet providers. The new guidance will require that existing rules on combating money laundering and will also apply to DLT businesses and service providers. One of the representatives stated:

 ‘’ What a great day for Switzerland as a #Blockchain and #Crypto Nation! For the first time, #FINMA has issued banking and securities dealers’ licences to two pure-play blockchain service providers’’

FINMA states that both of the businesses must verify the identity of their customers and have to establish the identity of any beneficial owners and will utilize a risk-based approach to monitoring business relationship. The companies will also have to file a report with the Money Laundering Reporting Office Switzerland if there are some reasonable reasons to suspect money laundering.
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Both of the projects are seeking to bridge the gap between functional DLT tech and the more traditional aspects. Many of the projects have expressed a wish to be among the first that will successfully blend these elements but none have yet made it successfully. The two banking licenses will represent a strong precedent for blockchain-based business moving forward.

As per the latest cryptocurrency news, Sygnum AG seeks to provide traditional and wealth management services with the help of the blockchain technology and the distributed ledger technology to back it up. Asset management, brokerage, credit, and tokenization will also fall under their offerings. SEBA Crypto AG is focusing on asset management on the long-term scope that includes transaction banking and storage custody services.