PostFinance, Sygnum Bank Team offers crypto

Swiss state-owned bank PostFinance is entering the cryptocurrency business.

The company has teamed up with Swiss digital bank Syngum to offer customers “a range of regulated digital asset banking services,” according to an announcement on Wednesday (April 5).

“Digital assets have become an integral part of the financial world and our customers want access to this market with PostFinance, their trusted main bank,” said Philipp Merkt, the bank’s chief investment officer.

The program allows PostFinance’s customers to buy, sell and store cryptocurrencies such as bitcoin and ethereum. It was created in response to a “strong demand for digital investment services” among PostFinance’s customers, according to the release.

“As a fully regulated digital asset specialist with a Swiss banking license, Sygnum … can provide a secure bridge between traditional finance and digital assets,” the announcement said.

This entry into the crypto sector by a state-owned entity comes at a time when a number of other governments are cracking down on digital assets. For example, officials for China last week saw calls for greater regulation of the industry.

Speaking at the Boao forum, Xuan Changneng, a vice governor at the People’s Bank of China, cited the risks and fraud associated with crypto, including the collapse of two US banks that had provided financial services to crypto-related companies.

“The regulatory philosophy, technology and capacity must be upgraded to ensure that financial innovation does not come at the expense of financial stability,” Changneng said.

And US regulators have warned financial institutions to be wary of “potential increased liquidity risk” presented by funding from crypto-related entities, while the Securities and Exchange Commission (SEC) has taken several measures against the industry.

Even in countries that have seemed more friendly to cryptocurrencies, businesses are feeling the pressure.

UK crypto firms said they were facing new banking problems, such as rejected applications for redundant paperwork, prompting the companies to ask the government – whose leader has spoken of turning the country into a “crypto hub” – for help.

“There are not many options available,” said Edouard Daunizeau, CEO of London-based crypto investment firm SavingBlocks. “Most traditional banks will not offer banking services to crypto firms. With the latest series of events, it will be even tougher. We are seeking licenses in France where we believe it will be easier.”

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