Switzerland’s oldest cryptocurrency company Bitcoin Suisse has decided to withdraw its application for a bank license following an unfavorable forecast from the regulator.
The Swiss Financial Market Supervisory Authority (FINMA) said it was unlikely, based on the information available, that the company’s request would be approved.
Among several reasons for the negative outlook, the regulator noted the weakness of the mechanisms for combating money laundering at Bitcoin Suisse.
The firm notified FINMA of the withdrawal of the application and the institution terminated the licensing process.
The regulator reminded Bitcoin Suisse that, as a financial intermediary in the cryptocurrency market, it is obliged to comply with established anti-money laundering regulations. FINMA supervises compliance with the relevant regulations and enterprises not under its control.
The company filed documents for a banking license in 2019, in which FINMA first approved similar applications from two blockchain firms. SEBA and Sygnum were given the opportunity to operate as regulated banks.
Recall that in 2020, Bitcoin Suisse raised more than $ 48 million in a Series A funding round to scale the business.