SEBA Project — First Swiss Crypto Bank
Switzerland has a reputation of being one of countries with reliable banking systems. In recent years this region was extremely open to crypto progress, and now it has a plan to establish the first crypto bank. The symbiosis of these two spheres in the country was just a matter of time, and the question was raised in the autumn of 2018. The new project SEBA Crypto AG was first announced on September 27. The main idea is to create the first regulated crypto bank with a complete list of financial services. The company is headed by Guido Buehler, a person with an impressive banking experience. In particular, he previously worked at UBS Group AG, the largest Swiss financial holding company.
It is quite expected that the company’s headquarters is located in Zug, European Crypto Valley. Now SEBA is one of many projects based in Zug, yet, it is the first full-fledged banking institution focused on cryptocurrency. At the same time, the concept is not original. For example, the American startup Circle is already waiting for a local regulator to make a decision on a banking license. The founders of SEBA Crypto AG also filed an application with FINMA to obtain a banking and dealer license.
Crypto bank is the next stage of the crypto market development
It’s still too early to talk about opportunities for clients without a regulator’s decision, but the creators assume that SEBA’s dealer activity will be regulated in the same way as securities dealers. It is expected that all necessary permits will be obtained by mid-2019, and the company will be fully operational.
Until then, the founders successfully attract investors and enter into partnership agreements. As a part of the fundraising campaign, the startup has already attracted $103 million. The creators say that their company is funded by those who really believe that the project will succeed, considering a sharp market downfall in 2018. They are top managers of such investment companies as BlackRiver Asset Management AG and Summer Capital, as well as other Swiss and Asian crypto enthusiasts.
According to Guido Buehler, SEBA Crypto AG is a bridge between fiat and crypto money, which keeps gaining increasing expansion. The main task of the project is to make banking services accessible to cryptocurrency holders. Traditional banks don’t seek to deal with customers’ crypto money, citing potential security problems. And this makes sense, as anonymity provides plenty of opportunities for anyone who wants to hide their financial activities, but in the case of any bank, there is no anonymity. All clients of the crypto bank will undergo AML-KYC procedures, just like in regular financial institutions.
Safety and reliability
The project team is most concerned about security, including ensuring safe storage of funds. Swiss banks are known for being highly reliable, and SEBA Crypto AG aims to get closer to the highest standard. On November 22, it became known that Loomis International had partnered with the SEBA project. It’s a leading company in the field of storage and logistics of valuable things.
The partnership shows the seriousness of the SEBA team, because one of the services offered by the crypto bank is depositing customers’ funds. There is a reason to believe that with such a partner as Loomis International, the crypto assets in the bank will be much more protected than on cryptocurrency exchanges.
So far, SEBA Crypto AG is just a startup, albeit a promising one. Real development prospects will be clear in 2019, and the FINMA solution will be known in the middle of the following year. We can only observe the development of the project that has a high chance to become a pioneer in the field of crypto banking.