Dukascopy, the Swiss forex bank and brokerage firm, today announced the continued rollout of its cryptocurrency offering, this time allowing crypto-related companies to open business accounts.
According to Dukascopy, the selection process for new customers will be rigorous as the FX bank will only consider blockchain companies after carrying out in-depth due diligence on them. Additionally, the bank will only accept crypto firms incorporated and regulated in the EU, the UK or Switzerland and will run background checks before it makes a final decision.
Dukascopy further explained: “In order to tackle risks related to the anonymity of crypto transactions, the Bank opens a corporate accounts for companies and personal MCA accounts for clients of these companies. In this manner, any money transfer between the crypto company and its client will remain inside the Bank’s secure network and under control of the Bank. The beneficiary, shareholders and top management of the company should have stainless reputation.”
It is rare for cryptocurrency exchanges to secure services from banks in Switzerland, though it is not impossible. Reports noted that earlier this year that Hypothekarbank Lenzburg bank will offer professional banking service for blockchain technology and cryptocurrency companies.
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The introduction of corporate accounts for crypto brokers and crypto exchanges marks the second stage of Dukascopy’s decisive move into the surging cryptocurrency arena, with the release of other projects in the pipeline.
More specifically, the Geneva-based brokerage firm said it will launch a dedicated crypto gateway in September 2018, which will allow its clients to deposit and withdraw funds in digital coins on/from their Dukascopy accounts.
Earlier in March, Dukascopy announced the launch of a contract-for-difference (CFD) for Bitcoin paired against the US dollar.
Mainstream Swiss banks have largely distanced themselves from engaging with cryptocurrency companies, which have come under increasing scrutiny from regulators. While the digital asset has been widely accepted in Switzerland, traditional lenders have been reluctant to do business with crypto-linked services providers because of money laundering concerns and prospects of a regulatory crackdown.