Outside Source
The collapse of Signature Bank and Silvergate Bank, two of the most crypto-friendly lenders in the U.S., has left many cryptocurrency firms in a state of uncertainty and desperation.
As regulators crack down on banking institutions dealing with digital assets, in what industry insiders such as Caitlin Long describe as “Operation Choke Point 2.0,” these firms are seeking alternative banking partners to provide liquidity and security.
One destination that has reportedly attracted their attention is Switzerland.
Swiss banks inundated with calls
A CNBC report citing industry insiders claims several Swiss banks have reported a surge in inquiries and requests for banking services from crypto companies, especially from the U.S.
According to the report, an unnamed Swiss lender received more requests in one day than ever before on the Monday following the collapse of Silvergate and Signature Bank in March 2023.
Other banks that have reportedly seen a marked increase in inquiries from crypto firms include Sygnum, which has obtained a Swiss banking license and a capital market license in Singapore, and other private lenders that operate under strict confidentiality.
These banks offer crypto firms access to fiat currency accounts, custody solutions, trading platforms, and other essential services for their operations.
One of the reasons why crypto firms are turning to Swiss banks is the stability and certainty of the Swiss regulatory environment.
Switzerland creating crypto-friendly environment
Switzerland has created a region called “Crypto Valley” in Zug, where it has fostered innovation and growth in the blockchain sector by providing clear guidelines and tax incentives.
Unlike the U.S., where crypto regulation is often vague and inconsistent, Switzerland has embraced digital assets as a legitimate part of its financial system.
Crypto firms that choose to bank with Swiss institutions may also benefit from the reputation and trustworthiness of Switzerland as a global financial center.
Despite some recent turmoil involving Credit Suisse, acquired by UBS after facing liquidity issues, Switzerland remains one of the most stable and secure countries for banking activities. Crypto firms may also find it easier to attract investors and customers who value privacy and quality when they partner with Swiss banks.
This article first appeared at crypto.news
