The only shortcoming faced by the crypto industry in Switzerland was the limited access of cryptocurrencies to the banking industry. Now Swiss Bank Association has found the solution to this problem. By providing guidelines and procedures to the banks, this inadequacy can be reduced as these guidelines will help banks in dealing with cryptocurrency start-ups. With this Switzerland will be able to take by all those projects that were moved to other countries because of limited access to the banking industry.
Switzerland is considered the home of cryptocurrencies and blockchain start-ups. It has more than 500 blockchains in Zurich, Zug, etc. This large number of blockchain required banks for their daily operations like deposits, withdrawals, and other activities. However, it was difficult to complete all of these operations because Swiss bank has restricted the access of bank for the crypto industry to avoid money laundering and other frauds.
To overcome this issue, the guidelines will help banks to effectively open accounts for companies insecure and easy manner. With this legal structure of the banks will not be disturbed.
A group of experts from Crypto Valley Association and the official from the banking sector will be formed to establish the guidelines. The guidelines will focus on ICOs as companies for fundraising use them. Some companies do not follow all rules and regulations in launching ICOs, which results in money laundering.
That`s why Swiss bank avoided performing operations of Blockchain. With the new guidelines, this problem can be solved, as it will focus on all the ambiguities that can result in money laundering. Know your customer (KYC) will be mandatory for companies dealing in ICOs. These will help the bank to check whether the account qualifies or not.