The number of blockchain companies in Switzerland has risen sharply.

Opening an account for blockchain companies poses various challenges for banks, because the new blockchain technologies can also be associated with risks, especially in relation to money laundering.

Switzerland has strict laws and due diligence requirements in place governing financial transactions. Banks must therefore carry out careful checks when opening an account.

However completely disregarding this segment would also be remiss, the Swiss Banking Association said in a press release that they take a positive view of blockchain as it boosts Switzerland’s attractiveness as a financial centre.

In light of this, the Swiss Banking Association has taken an active step in issuing a guideline for blockchain companies in Switzerland.The published guidelines are intended to help banks take a differentiated approach to account opening. Companies are categorised in the guidelines based on whether or not their business is tied to an ICO.

In this guideline companies whose business models have links to blockchain technology but has no ICOs planned should be treated the same as any other customer wanting to open an account

However, those with an ICO tied to their business will be subject to more stringent standards, the guidelines recommend that the ICO organiser should apply the relevant Swiss standards on the origin of funds (KYC) and money laundering (AML) when accepting cryptocurrencies under an ICO.

It is also proposed that the acceptance of cryptocurrencies under ICOs should be treated as a minimum in the same way as a cash transaction.

Featured image via swissbankinginfo.blogspot.com