The Swiss Financial Market Supervisory Authority, the country’s main financial regulator, has rejected Bitcoin Switzerland’s application for a banking license.
According to an official statement from 17. March, Bitcoin Switzerland’s current application is not approvable, as several elements of the licensing law make it unlikely that a license will be granted.
The regulator said it had withdrawn Bitcoin Switzerland’s application for a banking license and ended the licensing process.
Speaking to Cointelegraph, Arthur Vailloyan, CEO of Bitcoin Switzerland, remained optimistic and said that the company still has a lot of potential. He explained that the company’s reputation for storing and trading cryptocurrencies puts it in an ideal position as institutional adoption of digital assets grows exponentially.
Vailoyan explained that the landscape of crypto markets and the company’s position within it has changed significantly since it originally applied for the license in July 2019, and that Bitcoin Switzerland could reapply if it wished to.
Indeed, a banking license may be advantageous as security markings gain ground.
As Vailoyan explained, FINMA issued guidance on initial coin offerings in February 2018, which divided tokens into three categories: Payment, Utility and Assets, the latter being treated as a security. Today, when a company obtains a banking licence in Switzerland, it automatically obtains a broker-dealer licence. Consequently, a company with a banking license could engage in the purchase and sale of securities and thus take its rightful place in the emerging digital securities space.
Assuming the security token market gets off the ground, Vailloyan says it would be a strategic embarrassment if he could not fully participate in the opportunity and get his cut.
Although FINMA said Bitcoin Switzerland’s application revealed weaknesses in its anti-money laundering mechanisms, Vailoian said the company is aware of these shortcomings and is working closely with regulators to address them. He says we are as transparent as possible with the regulators.
Bitcoin Switzerland is a cryptocurrency broker and intermediary headquartered in the Swiss canton of Zug, known as Crypto Valley for its prevalence of cryptocurrency and blockchain-related businesses and its progressive approach to regulating digital assets.
Earlier this year, Bitcoin Switzerland introduced a payment solution that allows residents of the canton to pay their taxes in cryptocurrency. Projects with local businesses and a growing bull market have allowed the company to hire 120 new employees in the past year.
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