Swiss Bank to Begin Accepting Crypto Deposits
Maerki Baumann, a Swiss bank, has decided to join the world of cryptocurrency . This move comes hot on the heels of a recent, similar announcement by Hypothekarbank Lenzburg, a Swiss legacy bank.
However, according to a statement published on the International Investments website, a local news outlet, the financial institution has added that it will “not offer direct investment in cryptos and crypto derivatives” but “will provide experts if it becomes necessary.”
Swiss Banks Caution Against Crypto as Investment
The crypto market is quite volatile. Accordingly, Swiss bank advise their customers against long-term investments in the digital assets. According to a published statement, Maerki Baumann states that it will accept digital tokens acquired through payments for services rendered or from mining. It cites an unstable market and too much uncertainty as reasons for unattractiveness of the investment option.
In the statement, Maerki Baumann reveals that it is closely following the development of the digital assets as investment vehicles. However, at the same time, keeping track of the underlying regulation. The institution is also not ready to commit itself in the area until several concerns have been addressed. The concerns include the technology required to trade as well as the means to store the instruments. The bank has also cited limited experience and data on their part as another key concern that is hindering them from an all out move on the digital assets.
Industry sources quoted note that Swiss banks have embarked on engaging cryptocurrency clients out of the fear that they might lose all the business to Liechtenstein and the Cayman Islands. The observations come in the light of several Swiss banks shutting down their crypto services late last year, a move that sent many crypto miners and customers to look for alternative services.
Compared to the traditional banking sector, the digital token-related business in Switzerland is very small. Up until last year, the sector had rapidly expanded and it employed hundreds. However, the sector has weathered the storm and the banks are now trooping back.
Swiss Bank Reacting to Client Concerns
The business might be coming back, but the underlying worries remain unaddressed. Cryptocurrency clients have cited several hurdles they are undergoing and that have made it difficult to operate in the Swiss market. Many have complained about the problems with opening bank accounts. However, the banks have insisted that they will “not close the door on the opportunities that such innovation might bring.”