Bitcoin Suisse Pulls Bank Application Amid Regulatory Concerns

Crypto broker Bitcoin Suisse AG withdrew its application for a banking license in Switzerland after regulator Finma flagged potential weaknesses in the firm’s money laundering defense mechanisms.

“The application process has shown the need for further reviews of the anti-money laundering framework and potential enhancements,” Bitcoin Suisse said in a statement Wednesday, adding that it may re-apply at a later date. The company is still considering applying for a European banking license, Chief Executive Officer Arthur Vayloyan, a former Credit Suisse Group AG banker, said by phone.

Finma said earlier on Wednesday that, based on current information, the firm will probably fail to obtain a license. Bitcoin Suisse first submitted its application in July 2019.

Bitcoin Suisse expects revenue to have more than doubled last year to 45 million Swiss francs ($48.6 million), with net income rising to more than 15 million francs. The broker also said it saw “very high” client activity in the first two months of 2021.

©2021 Bloomberg L.P.

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