Crypto firms seek shelter in Switzerland
After the recent collapse of crypto-friendly banks in the United States, a functioning fiat gateway is badly needed.
After the recent collapse of crypto-friendly banks in the United States, a functioning fiat gateway is badly needed. Many international crypto firms are now seeking shelter in Switzerland, including digital asset bank Sygnum. The lure: clarity on regulation. Sygnum has also licenses in the United Arab Emirates and the Middle East.
In an interview with BTC-ECHO, Nayana Talwar, head of Private Clients and Family Offices at Sygnum Bank, explains: "In the past weeks we’ve seen a significant uptick in onboarding requests in the wake of the current happenings in the banking sector." March 2023 was also "one of the strongest months" for the Swiss financial institution since its founding, he said.
Sygnum is also stepping up efforts "to welcome new clients quickly but in full compliance," Talwar said. "We will continue to enable our clients and partners to invest in the digital assets economy with full confidence." About 2.5 million clients already have access to Bitcoin and Ethereum as part of a partnership with the Swiss state bank Postbank.
US banking crisis reveals dependence
It's a wake-up call: by mid-March the U.S. crypto sector was losing two of its biggest pillars. First, the crypto-friendly Silvergate Bank, followed by Signature Bank - the central bridge between crypto and fiat systems. "The crypto industry has effectively been cut off from banking, especially for fast 24/7 payments," says economics professor Austin Campbell.
1,600 crypto firms relied on Silvergate for fast crypto-to-USD exchanges. Signature said it already had more than 800 crypto clients in 2021, including Coinbase, Paxos and Circle.
The banking crisis shows how dependent the crypto sector is on the American banking system. According to Campbell, the most likely fix is a move to "other jurisdictions." A new, innovative crypto hub is already emerging in Hong Kong. Switzerland will likely be part of the new hub as well, thanks to Sygnum.
