A bank in Switzerland known as SEBA Crypto AG will be used to store cryptocurrency. This financial institution is set to partner with five reputable managers of industries. Its potential partners are asset managers and entrepreneurs in Germany and abroad. The Bank’s CEO revealed that these managers began to have an interest in its services after its launch.
SEBA Crypto Bank Will be Licensed in 2019
Details gathered reveals that the Bank was acquired in September this year and it will be licensed in 2019. It is being headed by reputable members of the Swiss financial community. Additionally, the bank has raised about 100 million Swiss francs from German investors and those living outside the country.
When asked how the revenue will be spent, the company’s CEO narrowed it down to a few projects. First of all, a major part of the 100 million to build a crypto bank. Next, a reserve of the remaining funds will be created. Part of this reserve may be used to fund its ICO where about 200 million francs will be generated.
The General Public’s Interest in Storing Cryptocurrencies
Asides from asset managers as its investors, it seems that the general public is also interested in this institution’s plans. Therefore, you’ll find family offices, institutional clients, and other entrepreneurs fully involved. The bank also intends to offer its services to Blockchain companies shortly.
As a result, this will give cryptocurrency a wider market base and promote its adoption in the country. The CEO’s comment is in line with this because he believes that the bank will be a bridge between the traditional financial world and virtual currencies. He was also quick to note that crypto assets will be placed in the custodian bank of their regulator.
FINMA Regulations to Financial Institutions
A bank of this nature and in Germany will have to adhere to the regulations of the Swiss Financial Market Supervisory Authority (FINMA). One of such regulations is that companies involved in crypto assets must estimate the risks of these assets at 800 percent. This will be a percentage determined by the current market value of the asset.
Based on the letter sent to notable financial institutions in the country, this is to ensure that credit risks are covered. Here, the bank is expected to reserve capital that will be able to handle potential risks that may occur given that the market is very volatile. Also, the regulator is trying to ensure that crypto trading does not exceed the limit of four percent out of the total capital set aside.