The blockchain space is showing signs of maturity. Clearly, the market has undergone various corrections, especially the cryptocurrency sector. However, banks are still unwilling to allow corporate accounts for blockchain companies due to underlying risks. Luckily, this is about to change thanks to efforts from the SBA.
In a news report on Swiss Banking, the Swiss Banking Association (SBA) reveals that there are new guidelines for corporate accounts. Specifically, the guidelines target the blockchain companies that are unable to hold such accounts. As per the SBA, the blockchain space is seeing a lot of growth. Therefore, it is only fair to show support and facilitate the growth to its full potential.
Corporate Accounts for Blockchain Companies
According to Swiss Banking, blockchain companies are unable to open accounts due to associated risks. Particularly, most cryptocurrency companies are still non-compliant with anti-money laundering laws (AML). Therefore, it is possible that they could use their corporate accounts to transfer the dirty money.
Also, they could help, without their knowledge, to provide passage to such money. This is for the reason that the crypto-verse exists in anonymity and privacy. Actually, most cryptocurrencies facilitate anonymous transfers. This way, it is quite a challenge to trace the movement of money.
Switzerland is at the forefront of the campaign for the adoption of cryptocurrency and the attendant technology. Interestingly, a report from International Law Office refers to the country as the world’s leading cryptocurrency hub. In light of this, SBA recognizes the challenges that the cryptocurrency sector is facing and would like to lessen them.
SBA Sets a Differentiated Approach
Particularly, Swiss Banking reports that:
“SBA set up an internal working group involving member banks and also Crypto Valley Association (CVA), to work in detail on requirements and conditions that might apply when opening accounts for companies with links to blockchain and ICOs.”
Further, the report notes that the guidelines “differentiate according to the form of corporate financing.” This is to say that corporate accounts for blockchain companies will depend on the nature of blockchain connections. Interestingly, companies that finance initial coin offerings (ICOs) face tougher guidelines. Therefore, it is fair to conclude that the guidelines will also majorly depend on the kind of corporate financing.
Nonetheless, the guidelines do not define binding minimum standards. However, they will heavily rely on “institution-specific instructions.” This is to help the companies grow in their own unique ways since their business models are unique as well.
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