In a First in Switzerland, Local Bank Offers Business Accounts to Crypto Firms

Switzerland is considered one of the most hospitable countries to cryptocurrency. A Swiss area has even earned the nickname “Crypto Valley” for the way it attracts and caters to crypto investors from different regions across the globe.

Now, the country is becoming an even more appealing headquarters for crypto miners. According to a recent report by Cointelegraph, Hypothekarbank Lenzburg has officially become the first bank in Switzerland to open business accounts for blockchain and crypto-linked fintech firms.

"As a bank that sets itself up technologically and pursues a cooperative strategy in the field of fintech, it is also a matter of credibility to work together with the young sector of crypto and blockchain companies in Switzerland,” Hypothekarbank Lenzburg CEO Marianne Wildi said.

Wildi said that prior to the announcement, they extensively studied the various risks and regulations surrounding the crypto industry. Additionally, they also had dialogues with the Swiss Financial Market Supervisory Authority (FINMA) before shaking hands with crypto companies.

Startups that wish to conduct business with Hypothekarbank Lenzburg reportedly go through a rigorous due diligence procedure. Wildi said that they’re quite prudent when selecting a crypto-related company to conduct transactions with, so much so that recently, they picked only two clients from the crypto market.

Aside from Hypothekarbank Lenzburg, there are also other financial firms in Switzerland that cater to businesses involved in crypto. The Bank Frick of Lichtenstein, for instance, has a service that allows direct crypto investment and cold storage for various cryptocurrencies like Litecoin, Bitcoin Cash, Bitcoin and Ethereum.

Moreover, miners are also drawn in to put up headquarters in Switzerland as it is one of the countries that have a robust supply of clean and cheap energy. As it stands, power consumption eats up a lot of the profit that miners gain through their work.

Support for crypto miners is also abundant in the country, with companies trying to reduce the cost of mining by using renewable energy, artificial intelligence and advantageous locations like cold places where air-conditioning is unnecessary.