Cryptocurrency Broker Bitcoin Suisse Applies for Banking License
Following the pressure for more transparency in the sector, Bitcoin Suisse ensures full compliance by essentially transforming into a bank.
Bitcoin Suisse, one of Europe’s best cryptocurrency brokers, has applied for a banking license. The move follows a similar decision by Bitpanda, which gained a money manager license. Europe remains one of the regions where fiat-to-crypto exchanges are not suppressed but are highly regulated.
Bitcoin Suisse filed for approval with the local Swiss Financial Market Supervision Authority (FINMA), the same authority that may grant a license to the Libra Association, the body of block producers behind Facebook’s digital asset project.
The broker has set aside 45 million Swiss francs, soon to be extended to 55 million, to secure user deposits and digital assets held in storage. Bitcoin Suisse also offers custodial services and highly secure wallets, a service seen as instrumental to spreading coin usage to institutional customers.
Bitcoin Suisse is one of the brokers offering large-scale OTC exchanges for private customers. During the peak times of ICOs, Bitcoin Suisse helped raise funds for prominent projects, including Bancor (BNT), Jibrel Network (JNT), Melonport (MLN) and others.
The broker is also part of the Crypto Valley ecosystem of companies based in Zug, Switzerland, which are evolving along with the crypto space. Bitcoin Suisse already offers 125 tradable crypto assets for a total of 6,000 trading pairs. The Bitcoin Suisse team has grown to 90 experts in various aspects of cryptocurrency, including IT, financials and legal challenges. The company, founded back in 2013, is on a mission to link the world of digital assets with that of traditional finance.
The decision of Bitcoin Suisse to obtain a banking license arrives during a moment of regulatory skepticism regarding digital assets. The most hawkish remarks were made by US-based regulators and politicians, leaving the door open for other countries to take up a more lenient policy, or build comprehensive regulation. Switzerland has been accommodating to digital asset businesses, allowing a legal framework to register multiple entities, including the Libra Association, and the Ethereum Foundation.