Seba Krypto AG looks to setting up a bank

The Zug-based Seba Krypto AG company has announced it is to invest CHF 100 million to set up a bank whose prime purpose is to act between those operating in the crypto sector and traditional financial institutions.

At present the Crypto Valley Association counts as many 530 start-up blockchain companies among its members, mainly in the Zug and Zurich region. One problem is that traditional banks in Switzerland have been hesitant when it comes to such firms opening accounts with them, presenting a major obstacle for such start-up companies.

As previously reported, the authorities here in Zug and those acting in the crypto sector have been pushing for a solution to be found, and without delay. Without a legal framework to provide the necessary certainty, it is feared companies may opt to be based in Liechtenstein, where such legal framework is about to be set up.

Last week the Swiss Bankers’ Association issued guidelines, though not binding regulations, for banks about how to deal with clients operating in the crypto area. It was up to each bank to decide whether it wanted to attract blockchain companies as clients.

On the political side, a working group in Bern is looking at regulation for all those operating in the crypto industry with a report expected to be handed over to the Federal Council for consideration by the end of this year.

Meanwhile players in this booming and impatient blockchain sector are themselves working on a solution. As mentioned, the Seba Krypto AG company has announced it is to invest CHF 100 million to set up a bank acting as a type of bridge between those operating in the crypto sector and traditional financial institutions.

As Guido Bühler, the CEO of Seba Crypto company, said, “Traditional financial institutions regard us as too risky and it is difficult for players in the crypto sector to transfer their funds to traditional banks. Hence, with this new bank we are setting up it is hoped to be able to fill this gap.”

In order to do this, it is seeking a bank licence from the Swiss Financial Market Supervisory Authority (Finma), which has confirmed it has been holding talks with the company. However, in order for a licence to be granted, capital of a minimum of CHF 10 million is needed, not to mention other demanding conditions. Nevertheless, Bühler hopes to be able to meet these conditions by the end of next year by which time it is planning to employ a staff of 55. What is more, the Seba company already has the support of Andreas Amschwand, who is currently on the board of the Julius Bär private bank, having previously been a top manager at UBS.  

Other influential backers include Urs Zulauf, a lawyer who until 2013 was a deputy director at Finma, in addition to EFG banker Reto Kunz and Guy Schwarzenbach, the son of Urs E. Schwarzenbach, the Henley-on-Thames resident who owns the Dolder Grand hotel in Zurich and who is CEO of the BlackRiver Asset Management AG company.