Zug Finance Director Says Crypto Banking Services for Blockchain Companies Coming By End of Year
Switzerland Banks will Start Offering Services to Blockchain Companies
Soon, Switzerland will start offering conventional banking services to the several blockchain companies that operate in the country. According to Heinz Tännler, the finance director at Zug, the future of blockchain startups in the Swiss economy looks promising. Heinz is confident that the implementation of laws that favor cryptocurrency platforms is imminent. Zug is among the most prominent blockchain companies in Switzerland. Heinz was speaking to the Financial Times about the stiff competitions amongst countries to attract cryptocurrency startups.
Precisely, Heinz stated that the favorable regulations could be deployed as early as 2018. He further added that Switzerland is facing fierce competition regarding the attraction of crypto entropies from Singapore and Malta. Therefore, it is imperative that the regulations be passed on time to fend off the competition.
World’s Leading Blockchain Hub
Previously, Switzerland has made several efforts to become the world's leading hub of blockchain projects and ICOs.at the beginning of the year, the Swiss minister for economics declared that the country intends to become a crypto nation. This mission, however, is significantly being impeded by the absence of banking services for companies that deal with cryptocurrencies and other digital assets.as of now, it is possible to make all payments except rent and salaries using digital currencies in Switzerland. Alain Kunz, the CEO of Coinlab Capital, believes that the shortcomings must be addressed before the government adopts blockchain technology. Moreover, the lack of banking services motioned above inhibits the development of nascent blockchain projects.
On his part, Heinz believes that the reluctances by banks to offer financial services to blockchain projects is entirely understandable. Mostly, cryptocurrency platforms facilitate anonymity of customers through cryptographic encryption techniques. On the other hand, traditional banks are accustomed to registering the details of their clients. Therefore, banks will require blockchain companies to comply with Know Your Customer (KYC) and Anti Money laundering (AML) regulations before permitting them to access their services.
Lastly, Heinz reiterated the importance of allowing crypto enterprises to access conventional banking services. By creating a conducive environment for such institutions, it would be easier to realize the goal of being a global hub for blockchain projects and ICOs. This is because favorable regulations will keep the existing firms from seeking better alternatives. Also, it would be encouraging aspiring blockchain startups to set up their bases within Switzerland.