Recently, Zurich Cantonal Bank (ZKB), one of the largest cantonal banks in Switzerland, officially launched trading and custody services for Bitcoin and Ethereum. According to the announcement released on September 4, ZKB customers can conduct cryptocurrency transactions around the clock through the bank's electronic banking and mobile banking platforms. ZKB also provides secure cryptocurrency custody services to ensure that customers do not need to keep their private keys themselves.
ZKB's service is not only for individual customers, but also provides support for other third-party banks. As a B2B (business-to-business) solution, it enables other Swiss banks to provide trading and secure storage services for Bitcoin and Ethereum to their customers. The first cooperative bank to use the service is Thurgau Cantonal Bank, which trades through Crypto Finance AG, a financial technology company, a subsidiary of the German Stock Exchange Group.
According to Aiying, in fact, ZKB has been exploring the field of blockchain and cryptocurrency as early as a few years ago. In 2021, ZKB participated in the issuance of the world's first digital bond, and in 2023, it also served as a joint lead underwriter for the Swiss National Bank to issue digital bonds using central bank digital currency. Although ZKB officially launched its cryptocurrency services a few months later than expected, it is still the latest among the major Swiss banks to join the cryptocurrency market. Previously, other Swiss cantonal banks, such as Zug Cantonal Bank, St. Gallen Cantonal Bank and Lucerne Cantonal Bank, have successfully launched cryptocurrency services. Swiss Crypto Regulatory Policy 1. Perfect Regulatory Framework: The Swiss Financial Market Supervisory Authority (FINMA) is one of the first financial regulators in the world to develop a clear regulatory framework for cryptocurrencies and blockchain technology. FINMA ensures the legality and transparency of cryptocurrency businesses through its Swiss Blockchain Act and Financial Market Infrastructure Act (FMIA). The agency provides clear guidelines for companies engaged in cryptocurrency business and requires these companies to obtain the corresponding licenses, such as a Fintech License or a DLT Trading Platform License. This makes Switzerland one of the most popular countries for cryptocurrency companies worldwide.
FINMA's regulatory framework emphasizes the following core principles:
Customer protection: Ensure that investors in cryptocurrency transactions are effectively protected, the transaction process is transparent, and the risks are clear.
Fighting illegal activities: Strict anti-money laundering (AML) and counter-terrorism financing (CFT) regulations ensure that cryptocurrencies are not used illegally.
Market integrity: Through compliance measures, the healthy operation of the cryptocurrency market is maintained and market confidence is enhanced.
The existence of these policies enables traditional financial institutions such as ZKB to enter the cryptocurrency market under the premise of legality and compliance, thereby enhancing the trust and stability of the market.
2. Development of "Crypto Valley":
The Swiss canton of Zug is known as the "Crypto Valley" for its early acceptance and promotion of cryptocurrency. The region has attracted a large number of blockchain and cryptocurrency companies and is the core of global blockchain technology innovation. Blockchain companies such as the Ethereum Foundation and Cardano have offices in the region.
The rapid development of Crypto Valley is due to the following factors:
Tax policy benefits: Switzerland is very friendly to cryptocurrency companies and individual holders in terms of tax policy, especially in terms of capital gains tax. Individuals' income from cryptocurrency transactions is usually tax-free, while companies can enjoy reasonable tax deductions.
High-quality infrastructure: Switzerland has a strong banking system, legal system, and data security and privacy protection, which provide a stable development environment for cryptocurrency companies.
International cooperation: Crypto Valley has attracted not only local Swiss companies, but also blockchain companies from around the world. Switzerland's legal transparency and international reputation make it an ideal place for cryptocurrency startups and investors.
3. Promotion of technological innovation:
According to Aiying, Switzerland is not only a leader in cryptocurrency regulation, but also has global influence in blockchain technology application and innovation. Switzerland's SIX Digital Exchange is one of the world's first digital asset trading platforms, allowing users to trade digital assets such as digital bonds. ZKB has also actively participated in innovation in this field, participating in the world's first digital bond issuance project and cooperating with the Swiss National Bank to pilot the central bank digital currency (CBDC).
4. Global influence and prospects:
Switzerland's cryptocurrency ecosystem is no longer limited to its own country, and its innovative model and regulatory experience are being referenced and adopted by other countries around the world. For example, relevant regulatory agencies in the European Union and the United States are drawing on Switzerland's experience to develop their own cryptocurrency legal frameworks. Switzerland has become an important promoter and standard setter for global cryptocurrency and blockchain technology.
In the future, Switzerland's further development in the field of cryptocurrency may involve more asset tokenization and innovative applications of cross-border payments. As a frontier country in financial innovation, Switzerland will continue to play its leading role in exploring the integration of cryptocurrency and traditional financial systems.
In short, Switzerland is a leader in the regulation, innovation and global influence of cryptocurrency and blockchain technology. This provides a solid foundation for traditional banks, including ZKB, to enter the cryptocurrency market, and also sets an example for the healthy development of the global cryptocurrency industry.
Of course, ZKB is not the only large traditional bank to enter the cryptocurrency field. Globally, more and more traditional banks are beginning to realize the potential of cryptocurrency. For example, JPMorgan Chase and Citibank in the United States have also gradually launched cryptocurrency-related products and services, showing the growing acceptance of this emerging asset class by the global banking industry.
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