Switzerland’s FINMA Authorizes Cryptocurrency Transactions For a Local Bank
Trading, holding, transferring and generation of digital assets is now possible for Incore Bank in Switzerland due to the authorization received from Swiss Financial Market Supervisory Authority (FINMA).
The local bank announced the launch of access to digital assets on May 29, representing a critical step towards the creation of a blockchain-friendly environment across the EU banking sector. This makes the bank the pioneering business-to-business bank in Switzerland, approved for operation within the cryptocurrency space.
Incore Bank is now allowing institutional clients to trade, hold, and transfer digital assets, as the authorization allows the bank to tokenize. The bank recently formed a digital services division to come up with these new services. According to the bank’s Head of Digital Services, Daniel Blatter, there will be complete separation of cryptocurrency client assets on individual wallets, thereby removing the need for additional capital requirement of the client bank.
The bank noted its cooperation with top partners from the cryptocurrency sector, particularly with the Swiss company Crypto Finance AG. Incore Bank is working together with its partner Inacta AG, an independent IT consulting company in Switzerland for further development of its services in the area of asset tokenization.
The bank’s CEO Mark Dambacher commented on the development, noting what their clients stand to gain:
“Our clients benefit from the expansion into this new asset class at a stroke, without the need to invest in infrastructure and new processes themselves. This while maintaining our customary safety standards. This is how we bridge traditional asset classes. Since the digital assets are entirely integrated into the core banking system, the end customers benefit from a user experience ranging from e-banking to asset reporting, as they are used to in the traditional banking world”
In December 2019, FINMA warned about the risk of leveraging money laundering with blockchain technology in Switzerland. Nevertheless, Switzerland’s regulatory watchdog passed an anti-money laundering provision three months ago lowering the transactions threshold for unidentified cryptocurrency exchange to about $1,020.