The Swiss Financial Market Supervisory Authority (FINMA) has rejected Bitcoin  Suisse AG’s banking license proposal filed by the Zug-based financial intermediary in 2019. The regulatory body in its official note mentioned that the application filed by the Suisse AG lacks several parameters especially its money laundering defense mechanism. The crypto firm later withdrew its application following which FINMA terminated the licensing procedure.

The official note read,

“Various elements that are relevant under licensing law make it unlikely that a license will be granted. Among other things, there are indications of weaknesses in the money laundering defense mechanisms.

Bitcoin Suisse AG has now informed FINMA that it is withdrawing the application for a banking license at the present time. FINMA is therefore terminating the licensing procedure,”

The rejection of Bitcoin Suisse’s banking license application suggests that even though Switzerland is seen as a nation with the best crypto regulations, it does not necessarily overlook shortcomings in light of its friendly regulatory nation image.

Switzerland a Growing Hub For Crypto Banking

Switzerland has become a growing hub for crypto banking as it was the first company to approve the fully regulated crypto banks in the form of SEBA and Sygnum. Since then many other crypto entities have applied for a similar license with the country’s financial regulatory watchdog FINMA and a few others even got the nod.

Switzerland has increasingly established itself as a growing cryptocurrency hub with ease of doing business. The regulations in the country have attracted even Facebook’s own digital currency plans earlier called libra and now changed to Diam. Facebook registered its digital currency project in Switzerland instead of the US because of the regulatory ease in the country.

As the cryptocurrency industry looks to go mainstream this year amid growing institutional demand and adoption, Switzerland could establish itself as a major hub for crypto businesses.