A recent industry meltdown has driven several cryptocurrency firms towards Swiss banks. The Swiss banks have become a safe haven for crypto firms that are struggling to cope with the turbulence in the cryptocurrency market. With its long-standing reputation for stability, privacy, and security, Switzerland has become a preferred destination for various crypto firms. Cryptocurrency firms from countries such as China, India, and Russia are also moving their operations to Switzerland, as the country continues to offer a favorable regulatory environment. Switzerland has been a pioneer in blockchain and has established itself as a leader in the crypto industry. The banks in Switzerland are well-equipped to handle the complex needs of crypto firms, which has made it an attractive destination for crypto entrepreneurs.
Swiss banks are increasingly seeing a surge in the number of US crypto firms onboarding, as some US crypto-supportive banks such as Silvergate, Signature Bank, and Silicon Valley Bank (SVB) are failing. Managing director of SEBA Bank, Yves Longchamp, reported a significant uptick in traffic from US clients. Meanwhile, Arab Bank has seen more interest from crypto venture capital businesses, with 80% of prospective client increase coming from former Silvergate customers. However, regulatory issues restrict the bank from onboarding more than one or two additional firms. Although Swiss banks are rising to the occasion and offering financial lifelines to US crypto firms, some industry leaders and policymakers believe that the sudden decrease in US-based crypto banks is part of a larger, deliberate government attempt to drive the industry out of the country’s borders. Republican Congressman Tom Emmer has written to the FDIC, questioning whether the agency has abused its authority to pressure banks not to serve crypto companies. Furthermore, Signature Bank board member and former House member Barney Frank claimed that there was “no objective reason” to close down Signature besides sending a “strong anti-crypto message” to other banks.
Why More US Crypto Firms are Onboarding with Swiss Banks Amid Banking Meltdown
Swiss Banks: Haven for US Crypto-Supportive Banks
The US crypto industry has been hit by a banking meltdown, as some crypto-supportive banks such as Silvergate, Signature Bank, and Silicon Valley Bank (SVB) have faced difficulties in the past two weeks. As a result, Swiss banks are reporting higher traffic from US clients. SEBA Bank’s managing director, Yves Longchamp, has reported a significant uptick in the number of US clients onboarding with the bank. Switzerland’s Arab Bank has also seen an increase in interest from crypto venture capital businesses. However, regulatory issues and restrictions mean that only one or two additional firms can onboard with the bank at most.
US Government’s Attempt to Drive Crypto Industry Out?
Some industry leaders and policymakers believe that the sudden decrease in US-based crypto banks is part of a larger, deliberate government attempt to drive the industry out of the country’s borders. Republican Congressman Tom Emmer has written to the FDIC, questioning whether the agency has abused its authority to pressure banks not to serve crypto companies. Furthermore, Signature Bank board member and former House member Barney Frank claimed that there was “no objective reason” to close down Signature besides sending a “strong anti-crypto message” to other banks.
Swiss banks have become a haven for US crypto-supportive banks that are struggling to survive in the current US banking environment. By offering a financial lifeline to US crypto firms, Swiss banks are helping to sustain the industry and provide a secure base for crypto businesses. The influx of US clients onboarding with Swiss banks is likely to continue until the US crypto banking environment stabilizes.