SEBA Crypto AG – a cryptocurrency startup based in Zug, Switzerland – is allegedly on the verge of obtaining a banking and securities dealer license sometime during the second quarter of 2019.
What Can You Do with That?
The license will be granted by FINMA, Switzerland’s financial market regulator. Should SEBA obtain the approval it needs, the firm will be able to conduct cryptocurrency trades and investments for both quality investors and established banking ventures. The industry will thus be further legitimized thanks to a stronger institutional presence.
In addition, the company is also looking to offer custodial services to its clients. CEO Guido Buhler explains:
As a general rule, crypto assets, just like investments in stocks and bonds, must be vested with our custodian bank function to the regulator.
What Makes Switzerland So Important?
As a side project, the company is hosting its own initial coin offering (ICO) in the hopes that it will garner an additional $206 million that it can put towards the expansion of its operations into larger financial hubs in 2019 starting with Switzerland’s own financial capital of Zurich.
Switzerland is one of the world’s most established blockchain and cryptocurrency regions. The nation plays host to the renowned “Crypto Valley,” which takes part of its named from the legendary “Silicon Valley” in northern California. As Silicon Valley offers an array of high-ranking tech companies like Facebook, Crypto Valley offers the world numerous blockchain startups seeking to boost mainstream adoption of digital assets.
Raising Some Extra Cash
Switzerland boasts some of the world’s most flexible and “easy-going” regulations when it comes to crypto. However, FINMA does recognize that there are several risks associated with trading and buying digital currencies. In early November, for example, the organization sent a confidential letter to various financial institutions asking them to estimate risk coverage of cryptocurrencies for roughly 800 percent of current market value.
Last September, SEBA made headlines when it secured roughly 100 million CHF (equivalent to roughly $103 million USD) in a new funding round to build a regulated bank that could work in both traditional and digital finance.
The Road Less Traveled
Andreas Amschwand – designated chairman of SEBA and formerly UBS global head of foreign exchange and money market – explained:
In Switzerland, we have commitment from various authorities to establish a comprehensive regulatory environment for the development of blockchain technology and the sustainable, stable growth of crypto assets. This makes Switzerland the ideal place to launch a new financial services paradigm. I’m excited to be part of a team of experts helping to usher in the crypto economy.
Is SEBA opening the door to future blockchain development? Post your comments below!
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