SEBA Setting Up Regulated Crypto Bank

SEBA Crypto AG, the Swiss startup, is setting up a regulated cryptocurrency bank which will offer cryptocurrency related services to investors as well as companies, while also offering regular banking services to companies in the crypto and Blockchain industry.

The startup’s Chief Executive Officer is ex-UBS executive Guido Buehler and its Chairman is Andreas Amschwand, another former UBS stalwart. The startup has already raised 100 million Swiss Francs (~$103 million) for this venture.

SEBA is also applying for a banking and securities dealer’s license so that it can also handling crypto trading and investments for its clients.

Bridging the Gap

According to Buehler, SEBA is looking to bridge the gap between traditional finance and the new cryptocurrency economy. He said that the new bank would focus on safety, transparency as well as performance has its core values and was aiming to become a market leader in this new space where the crypto economy converges with the traditional financial industry.

The aim of the new bank will be to provide corporate financing, which includes advice on ICOs (Initial Coin Offerings), and other banking as well as cryptocurrency services to crypto groups and traditional corporates.

The new SEBA bank will be located in Zug, Switzerland, which, along with Zurich, has become a hub for cryptocurrency startups. More than 500 crypto and Blockchain based startups have settled in these two areas. However, even as this new industry is growing, the companies have been struggling to integrate into the country’s traditional financial market.

Current Challenges with Traditional Banks

While banks across the world acknowledge the promise in the cryptocurrency and Blockchain industry, most are hesitant about entering that market since due diligence checks have not been put in place for the industry as a whole. In fact, till last year, such checks were rarely being performed for the ICOs being raised.

Another reason why banks are hesitant about doing business in the cryptocurrency sphere is because the industry’s long term value has still not been tested.

Because of this, cryptocurrency firms are finding it difficult to gain access to traditional banking services. In fact, some cryptocurrency companies have been outright denied services by traditional banks.

New Financial Services Paradigm

According to Amschwand, in Switzerland, a commitment has been made by various authorities that a comprehensive regulatory environment would be set up so that Blockchain technology and crypto assets could see sustainable as well as stable growth.

And because of this, the country is the ideal place to begin the integration of the traditional financial services industry and the new crypto and Blockchain industry.