Today, 21.09.2018, the Swiss Bankers Association (“SBA”) confirmed that the SBA welcomes the very sharply increasing number of blockchain companies in Switzerland and takes a positive view of the high market momentum, as it boosts Switzerland’s attractiveness as a financial centre. The SBA further states that Banks see blockchain technology as an opportunity opening up an array of possibilities for the country as a financial and technology location. Within the context of its priorities, the SBA promotes and supports an innovation-friendly environment in the digitalisation arena. This also includes promoting conditions that support the sustainable growth of companies involved in blockchain technology. The most comprehensive requirements of such guidelines apply to the documentation for companies that finance an ICO via cryptocurrencies.
- Blockchain companies without an ICO: Companies whose business model has links to blockchain technology but that do not use this for corporate financing should not be treated any differently to other SME customers wanting to open an account. The usual, strict legal regulations that govern account opening apply. Companies have a duty to cooperate in the opening of banking relationships. They need to be able to demonstrate that they are aware of and adhere to all regulations applicable to their business models. This includes being able to show a meaningful business plan and adequate processes and resources.
- Blockchain companies with ICOs: Companies that raise capital for corporate purposes by issuing tokens using blockchain technology can do so in the form of fiat or cryptocurrencies. For companies whose ICOs are funded by cryptocurrencies, higher and additional requirements should be imposed, whether or not they are subject to the Anti-Money Laundering Act. The guidelines recommend that the ICO organiser should apply the relevant Swiss standards on the origin of funds (KYC) and money laundering (AML) when accepting cryptocurrencies under an ICO. It is also proposed that the acceptance of cryptocurrencies under ICOs should be treated as a minimum in the same way as a cash transaction.
The SBA guidelines adopt the terminology and classification of tokens in accordance with FINMA’s ICO Guidelines of 16.02.2018 and build on the Agreement on the Swiss banks’ code of conduct with regard to the exercise of due diligence (CDB), with additional blockchain-specific principles. Also, the SBA clearly state that the guidelines do not define binding minimum standards. Institution-specific instructions issued by SBA members will take precedence. Each bank is responsible for its own business activities.
The guidelines can be downloaded under https://www.swissbanking.org/library/richtlinien/leitfaden-der-sbvg-zur-eroeffnung-von-firmenkonti-fuer-blockchain-unternehmen/sbvg_leitfaden_kontoeroeffnung_d.pdf/@@download/file.
Please do not hesitate and contact Hans Kuhn or Diego Benz in case you have further questions or in case they can be of assistance for you or your clients.
Contributing Advisors
