The Swiss Financial Markets Authority, the country’s main financial regulator, has issued “negative outlook” for Bitcoin Suisse’s application for a banking license.
According to an official announcement issued on Wednesday, the current Bitcoin Suisse application is not subject to approval on the grounds that “various relevant elements under the Licensing Act make it unlikely that a license will be granted.” Thus, Bitcoin Suisse decided to withdraw the order.
Speaking to Cointelegraph, Bitcoin Suisse CEO Arthur Vayloyan remained optimistic, noting that the company still has “many options on the table.” He explained that the company’s reputation for storing and trading cryptocurrencies has put it in an ideal position as institutional use of digital assets skyrockets.
Wailoyan explained that since the company originally applied for the license in July 2019, the cryptocurrency markets and the company’s position on them have changed dramatically, and they can use Bitcoin Suisse again if they want.
In fact, licensing of banks can be beneficial as security tokens gain traction.
As Vailoyan explained, in February 2018, FINMA issued an IPO guideline, according to which tokens were divided into three classes: payment, tools and assets, the latter being a guarantee. Today, when a company gets a banking license in Switzerland, it also automatically gets a broker-dealer license. Therefore, a company with a banking license will be able to buy and sell securities, which will give it a boost in the new field of digital securities.
“Assuming the security token market gains momentum, it would be a shame from a strategic point of view not to be able to fully participate in this opening opportunity and gain a stake,” Faylian said.
While FINMA said that there are clear shortcomings in the Bitcoin Suisse app, Wailoyan said that the company is aware of loopholes in this regard and is working closely with regulators to solve them. “We are as transparent as possible with regard to regulatory bodies,” he said.
Bitcoin Suisse is a cryptocurrency and intermediary headquartered in the canton of Zug in Switzerland, which he calls the “Crypto Valley” for most cryptocurrency and blockchain companies and a progressive regulatory approach to digital assets.
Earlier this year, Bitcoin Suisse introduced a payment solution that allows Canton residents to pay taxes in cryptocurrencies. Projects with local companies and the government, together with a growing beef market, have increased the company’s workforce by 120 people in the past year.