Switzerland’s Hypothekarbank Lenzburg Is Now Offering Business Accounts To Cryptocurrency And Blockchain Firms

A Swiss bank called Hypothekarbank Lenzburg is making headlines after becoming the first bank in Switzerland to issue business accounts to companies that deal with blockchain and cryptocurrencies.

Switzerland is one of the countries where cryptocurrency adoption has really taken off but companies in the blockchain and crypto space have been having a tough time trying to open accounts with traditional banks.Hypothekarbank Lenzburgis the first bank in the country to take action by becoming the first bank in Switzerland to open bank accounts for crypto and Bitcoin firms.

Swiss banks have been reluctant to open accounts for blockchain companies because of the strict anti-money laundering rules that are imposed in the country’s banking system. Cryptocurrencies have also been associated with fraudulent activities through ICOs and other legal issues in the past thus the decision by banks to avoid doing business with crypto firms.

Marianne Wildi, the CEO of Hypothekarbank Lenzburg stated that the decision to open the doors for blockchain and crypto firms was a matter of credibility. This is because it markets itself as a bank that focuses on technology and working with fintech organizations, especially those in the blockchain and cryptocurrency arena in Switzerland.

Wildi acknowledged that there are concerns tied to the cryptocurrency market such as money laundering and fraudulent ICOs. However, the Swiss bank has already evaluated the crypto market very closely and identified the associated risks as well as compliance issues. Crypto and blockchain firms planning to open accounts at the Hypothekarbank Lenzburg bank will thus be subjected to a rigorous evaluation and due diligence process to determine whether they will be accepted or not.

Hypothekarbank Lenzburg is not the first bank to dabble in the cryptocurrency space. Falcon Private Bank has been providing crypto asset management services since 2017. The new move by the Swiss bank also means banks are becoming more open to the idea of dealing with cryptocurrency-related companies especially now that they have a better understanding of the market. One good example is the Bank Frick of Lichtenstein which believes that doing business with Swiss blockchain and crypto firms does not pose any threat to its reputation and there are no compliance issues.

Liechtenstein Principality has transformed into a major financial hub in Europe and it plans to play a key role in the financial technology industry. The Swiss government has also been on top of things as far as legislation concerning the crypto scene are concerned.