Bitcoin Suisse AG has been denied by the Swiss Monetary Market Supervisory Authority (FINMA) in its utility for a banking license. Bitcoin Suisse submitted an utility for a Swiss banking license in July 2019.
In keeping with a press release by FINMA, the financial institution license utility was refused on account of “indications of weaknesses within the cash laundering defence mechanisms.”
Bitcoin Suisse AG has reportedly knowledgeable FINMA that it’s withdrawing the applying for a banking license at the moment. FINMA mentioned it’s due to this fact terminating the licensing process.
In a weblog put up, Bitcoin Suisse said:
“the Board of Administrators has determined to withdraw the applying in the intervening time however reserved its resolution to re-apply. The appliance course of has proven the necessity for additional critiques of the anti-money laundering framework and potential enhancements. Bitcoin Suisse has initiated the respective tasks which, nevertheless, want extra time than anticipated.”
Bitcoin Suisse is a crypto buying and selling and staking platform that studies over CHF 3 billion belongings beneath custody. Bitcoin Suisse purchasers are mentioned to have dedicated a complete of over USD 1 billion in staked crypto belongings within the seven staking currencies supported by way of Bitcoin Suisse’s custodial staking service.
Final month, Bitcoin Suisse mentioned that volumes and demand have continued to develop in Q1 2021 and thus it elevated its default financial institution assure from an AA-rated Swiss financial institution by one other CHF 30m to now CHF 110m. Bitcoin Suisse mentioned it protects and covers public on-balance sheet deposits 100%.
FINMA notes that Bitcoin Suisse will not be supervised by the regulator however is topic to anti-money laundering provisions.
FINMA states that its accountability for unregulated firms focuses on “opening investigations and, the place crucial, taking corrective measures the place there are indications that supervisory legislation has been breached by way of the unauthorized actions being carried out with out the required licence.”
Bitcoin Suisse expects 2020 revenues to be in extra of CHF 45 million and web revenue for 2020 of round CHF 15 million.