FINMA rejects Bitcoin Suisse’s application for a banking license

TL;DR Breakdown

  • The Swiss financial regulator rejected Bitcoin Suisse’s application for a banking license.
  • The company wants to withdraw from the application presently.

The banking license application filed by Bitcoin Suisse AG, a Switzerland-based digital currency investment company, has been turned down by the country’s financial watchdog. The Swiss Financial Market Supervisory Authority (FINMA) considered the application to be ineligible for approval, according to a report by Reuters on Wednesday. Following the development, the crypto company is withdrawing its banking license application.

Bitcoin Suisse is withdrawing its application

As per FINMA’s press statement, it considered Bitcoin Suisse’s application for a banking license unworthy for approval based on current information and that the prognosis is unfavorable, it said. “Various elements that are relevant under licensing law make it unlikely that a license will be granted. Among other things, there are indications of weaknesses in the money laundering defense mechanisms.

The Swiss regulator is terminating the license procedures, as Bitcoin Suisse says it’s withdrawing the application at this time.

Among other things, Bitcoin Suisse provides cryptocurrency trading, prime brokerage, and custody services. It applied for a banking license with the financial watchdog back in 2019, according to the press statement. The goal of the company was to adapt to the fast-changing regulatory landscape for cryptocurrencies while also expanding its services and products as regulated offerings to investors.

Meanwhile, FINMA awarded banking licenses to two cryptocurrency-focused banking institutions, Seba Crypto and Sygnum, in August 2019.

The US leads the pace

In the United States, a number of cryptocurrency companies were able to secure banking licenses from the regulators. Anchorage became the first federally chartered digital asset bank after receiving a conditional banking license from the United States’ Office of the Comptroller of the Currency (OCC). Kraken, a leading crypto exchange, also secured a banking license from the US authority, which authorizes the company to operate as a banking institution.

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