A Swiss forex bank, Dukascopy, disclosed that it would continue its efforts to roll out offerings focused on crypto-related firms. The bank indicated that the current offering is focused on enabling digital coin-associated enterprises to have business accounts in the bank. This included brokerages and exchanges dealing with virtual currencies. The actions suggested that it is not worried about the current market trend and the concerns shown by different people on the sector.
In-depth Due Diligence
However, the forex bank, which is also engaged in broking also, is relying on its in-depth due diligence on new customers. Dukascopy already indicated that the process of selection in respect of new customers would be meticulous since its focus would be mainly on blockchain enterprises and that too after fulfilling the due diligence. This apart, the bank is clear in its thought that it would allow this rule to only digital currency firms that are established either in the European Union or the United Kingdom or Switzerland.
Aside from these, the bank has indicated that that is the final decision is purely based on the performance of the background checks. The financial service provider explained that its move to allow corporate accounts and personal MCA accounts for clients meant that they are keen to manage the risks associated with crypto transactions anonymity. The bank believes that through the process it could be in a position to identify the money transfer, i.e., between the client and digital coin firm. The financial service provider thinks that this is possible only through its secured network apart from bringing it under its control.
According to a report in financemagnates.com, Dukascopy thinks that the shareholders, beneficiary and top management could have a stainless reputation. It is not an easy task to get services from banks in the country though it cannot be termed it as an impossible one. Previous reports suggested that Hypothekarbank Lenzburg bank would also provide banking services for blockchain technology apart from cryptocurrency firms.
The bank thinks that it is in a second stage in respect of launching of corporate accounts to digital currency exchanges, as well as, brokers in the crypto sector. The Swiss bank disclosed that there also other projects that are in its pipeline. In September, it would introduce a dedicated crypto gateway that would enable its clients to not only deposit digital coins but also deposit in crypto coins.
Big Banks Shunned
Mainstream banks in the country are not showing their interest towards the growing digital currency segment. They have shunned themselves from engaging with any virtual currencies firms that have come under the scrutiny of regulators increasingly. Though Swiss is one of the countries where the crypto-coin is accepted widely in the country, banks were reluctant to do any business with any service providers that are aligned with crypto.
Earlier, the bank was worried about issues concerning money laundering apart from a possible crackdown of regulators. The banking industry is slowing learning that they cannot afford to ignore the sector altogether and that their early entry meant taking an advantageous position in the crypto segment.