Former USB Bankers Get $103 Million Closer to Create a Crypto Bank

The Swiss-based startup, SEBA Crypto AG, managed to raise over $103 million of investments to support their goal of launching a bank offering crypto-related services.

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Headed by former UBS bankers, Andreas Amschwand (Chairman) and Guido Buehler (Chief executive), SEBA is on the way to getting a securities dealer and banking license from FINMA- Swiss financial industry regulator. The license will give the company the right to conduct investments business and crypto trading for qualified investors and other banks.

According to SEBA’s chief executive, the company aims to unite between the cryptocurrency industry and the traditional banking sector. The startup also plans to offer corporate financing services like a consultation on ICOs and other digital assets for corporate clients.

Commenting on the project, Andreas Amschwand said that Switzerland offers a favorable environment for their project, as several authorities have committed to creating a stable regulatory environment to boost the growth of blockchain technology and crypto-assets.

Within the goals of 2019, SEBA is planning to expand its operation in major financial hubs, starting with Zurich. The company’s investors include reputable firms such as Summer Capital, BlackRiver, Asset Management, Singapore, China, Hong Kong, and Switzerland.

Last week, the SBA (Swiss Bankers Association) issued regulatory guidelines for banks working with startups in the blockchain industry. These guidelines were issued to avoid a mass crypto exodus due to regulatory arbitrage in Switzerland.

According to the regulations issued by the SBA, firms with Initial coin offerings (ICOs) must follow the regulations strictly and abide by the Swiss KYC (know-your-customer) and AML (anti-money laundering) laws. On the other hand, companies without ICOs will have the same treatment as other small and medium enterprises.

Earlier last month, the Maerki Baumann bank started accepting crypto assets for crypto mining and rendered services. Furthermore, the bank is planning to offer its clients support from cryptocurrency experts, who can advise them. 

In June this year, the Hypothekarbank pioneered the Swiss banking industry with its offering of business accounts to crypto-related and blockchain FINTECH companies. The bank follows a strict selection process and rigorous due diligence for all applicants, approving only two companies as of June.

ICO crypto trading Government Regulations Initial Coin Offering