Startup Cryptocurrency Bank Launched with $103 MillionSeptember 27, 2018
Reporters from Zurich for Reuters have to say that a Swiss startup SEBA CRYPTO AG raised 100 million Swiss Francs, which amounts to $103 million in order to build a bank that will provide traditional banking services as well as cryptocurrency services to companies and firms.
The vision of SEBA was summarized as follows “With safety, transparency, and performance as core values, our ambition is to become a market leader in the convergence of traditional finance with the crypto economy.”
The Swiss startup will be headed by Guido Buehler who will be the chief executive. Andreas Amschwand will be the Chairman. Of note, Guido Buehler and Andreas Amschwand were the former UBS managers.
Buehler states that “SEBA wants to bridge the gap between traditional banking and the new world of crypto.”
SEBA CRYPTO AG reportedly is looking for a dealer’s license for Banking and Securities to help with managing their trading and investments for their qualified investors and banks.
FINMA is the Swiss Market Financial Supervisor who is responsible to perform due diligence checks before issuing the dealer’s license. FINMA has acknowledged that they are in contacts with SEBA on the matter.
There are more than 500 startups that have established themselves around the areas of Zug and Zurich. However, the industry is integrating itself with the traditional financial hub system as it is an essential move when the crypto industry would move mainstream with evolution in financial trends.
The group will be providing for corporate financing, which will be inclusive of ICOs and related cryptocurrency and banking services. These services will be provided for traditional corporate clients and as well for cryptocurrency groups.
Amschwand remarked, “In Switzerland, we have the commitment from various authorities to establish a comprehensive regulatory environment for the development of blockchain technology and the sustainable, stable growth of crypto assets.”
SEBA will be further expanding its financial services to major financial hubs, beginning with Zurich in the year 2019.
The Investors who have currently financed SEBA in the fundraising are “Black River Asset Management and Hong Kong-based Summer Capital, along with other parties from Switzerland, Singapore, Malaysia, China, and Hong Kong.”
The basic guidelines applicable for banks who work with blockchain startups was issued earlier this month from the Swiss Bankers Association (SBA). This is meant to prevent mass “crypto exodus from Switzerland due to regulatory arbitrage.”
According to the scheme provided by SBA, blockchain firms that do not have Initial Coin Offerings will be treated just like any other standard small and medium-sized company.
Firms who have ICOs will have to follow strict rules and they fall within the purview of “Swiss anti-money laundering (AML) and know-your-customer (KYC) laws.”
Of note, Hypothekarbank Lenzburg is documented to be the first bank in Switzerland to permit business accounts for blockchain as well as crypto-related Fintech companies. However, this bank has been very selective about whom they are dealing with.