Swiss bank Maerki Baumann will become the second bank in Switzerland to accept money derived from cryptocurrency operations, including funds obtained through crypto mining and the receipt of payments for services rendered.
Maerki Baumann, a Zurich-based bank, to accept funds from cryptocurrency operations
The decision of the financial institution comes at a time when most local banks refuse to accept this type of digital assets and, in other countries, there are regulatory frameworks against cryptocurrency exchange platforms. These decisions confront the most critical position in the community that sees banks as actors outside the cryptocurrency ecosystem.
According to a report released on Monday, August 6th, the Zurich-based bank decided as a response to new market demands and the increasing popularity of cryptocurrencies.
Maerki Baumann informed that it would not offer direct investment in cryptocurrency and other derivatives, as the bank does not recommend making substantial investments in cryptos or maintaining them in the long term due to cryptocurrencies market’s volatility.
In other regions, the banking system and the cryptocurrencies are not getting along as well as in Switzerland
The international banking and financial system face new challenges from the increased use of cryptocurrency. The decentralized nature of cryptos such as Bitcoin (BTC), among others, is rethinking the way users manage their own money without the involvement of intermediaries, and banks don’t like this.
For that reason mainstream banks and financial institutions refuse cryptocurrency. While in some regions of the world there exists openness, in some other areas, especially in South America, the doors remain closed for digital assets.
Some recent cases are, for example, the cessation of operations of the cryptocurrency exchange platform Buda in Colombia due to the company’s bank accounts closure by several mainstream banks.
However, fortunately, Switzerland shows a greater openness to cryptocurrencies, and, recently, the Zurich-based Maerki Baumann bank accepted cryptocurrency operations.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.