A Zurich-based bank, Maerki Baumann, is looking to form corporate partnerships with crypto firms. They hope by doing this it will remove a major bottleneck plaguing the industry for awhile now. According to local media reports, Zurich-based Falcon Private Bank, a competitor of Maerki Baumann, is currently offering such services to the crypto-asset firms, but Maerki Baumann’s foray into the blockchain industry will be a major game changer. Falcon Private Bank extended its spectrum of services to include crypto-asset management. This transpired after going into agreement with Bitcoin Suisse AG in 2017.
When Will Maerki Baumann Join The Industry?
It remains unclear the actual time Maerki Baumann will get its foot in the door. Recently, the bank released a statement saying management is “keeping an eye” on the crypto industry. The bank pointed out it is watching the industry with rapt attention with a view to understanding its progress in relation to the regulatory frameworks. The press release added that though they are following unfolding events industry-wide, it is not, “looking to gain exposure,” right now.
The Statement Continues
Maerki Baumann will nonetheless accept payments raised through virtual currencies. That is whether they are funds raised for payment of blockchain-related services, speculative transactions, or profits of mining operations. The press release said that the bank does not plan to join the sector now, stressing that it neither plans to invest in cryptocurrency, nor invest in the technology required to trade and take custody of crypto-asset instruments.
What Challenge Will Maerki Baumann Tackle?
It is hope that Maerki Baumann will provide the much-needed banking partnership for the speculative cryptocurrency industry. Even though the Swiss investment watchdogs, which have taken positive tact in dealing with its blockchain industry, have nonetheless raised concerns over the mass exodus of crypto firms in Switzerland months after the closure of two banks that hitherto serviced the crypto-based companies. The closure of the banks deprived the existing crypto firms of ideal banking partnerships needed to grow their businesses. This highlighted a major setback that similar companies face elsewhere in the world. These companies closing shops in Switzerland are moving to other locations with favorable regulations. Some include the British Virgin Islands and Liechtenstein.
Though, the coming of Maerki Baumann is likely to stem the tide of mass exodus of crypto-based companies. That could help reposition the European country as a crypto-friendly climate for blockchain development and other cryptocurrency-based businesses.
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