Bitcoin Suisse Pulls Banking License Application After Negative Feedback

FINMA cited money-laundering defense "weaknesses" as one reason for the license denial.

AccessTimeIconMar 17, 2021 at 11:34 a.m. UTC
Updated Sep 14, 2021 at 12:27 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Cryptocurrency trading platform Bitcoin Suisse AG withdrew its application for a Swiss banking license after being told it was unlikely to be approved.

  • According to the the Swiss Financial Market Supervisory Authority (FINMA), the Zug-based financial services providers' application is ineligible for approval, the regulator announced Wednesday.
  • Providing few details, FINMA cited a number of "elements that are relevant under licensing law," such as "weaknesses in money-laundering defense mechanisms," as the reason for the negative feedback.
  • As a result, Bitcoin Suisse indicated it would not be continuing with its application at the present time, the regulator said.
  • The company applied for a banking license in July 2019.
  • The firm raised more than CHF 45 million (US$48.5 million) in Series A funding in July 2020, which it claimed pushed its valuation to CHF 302.5 million ($327 million).

CORRECTED (March 22, 14:14 UTC): Makes clear that the company withdrew its application after being told it was unlikely to be approved and that the application was not rejected.)

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.