Panic As Major Cryptocurrency Companies Move to Swiss Bank
A lot has happened since major crypto-related banks collapsed in the United States. It has been gathered that the closure of Silicon Valley Bank, Signature Bank, Silvergate, and its likes, a situation that has triggered a lot of uncertainties in the industry, has not only compelled the investors to make impromptu choices that have led to a case of unwarranted profit-taking.
This has caused major cryptocurrency firms to reconsider their investment options outside the United States. So, the latest story coming from that sector says that there has been a mass movement of these companies into Swiss Banks.
According to persons attached to some affected companies, this move is considered a “financial lifeline.” Some of the sources contacted also said that the fact that all the banks collapsed in two weeks calls for attention – and the massive Swizz Bank migration looks like a viable alternative for companies for those who wish to be safe.
Which Swizz Banks Are Getting The Most Patronage?
While speaking with journalists through an email, Yves Longchamp, the M.D. of SEBA Bank, said that his bank had experienced a pronounced surge in the number of U.S. customers seeking to bank with them. The same applies to all their UAE, Singapore, and Hong Kong branches.
They have all confessed that they have experienced increased customers from the United States. Longchamp, in his statement, was quoted saying that “the onboarding process has already begun for cryptocurrency firms and other money managers, and there will be a lot more calls in the upcoming weeks.”
In otherward, information gathered has also shown that Switzerland’s Arab Bank has witnessed a rise in its cryptocurrency section since the beginning of March. They revealed most of these clients are venture capital companies. It was also gathered that this trend began after rumors of the Silvergate collapse started circulating in the industry.
In an account by Rani Jabban, Arab Bank’s head of treasury, 80% of their prospective customers come from defunct Silvergate clients. Meanwhile, it was also discovered that some regulations by the U.S. that restrict such banks from receiving these clients, which is, of course, a huge obstacle to the new banks.
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