PostFinance and Sygnum Bank Team to Offer Swiss Customers Crypto

Swiss government-owned bank PostFinance is getting into the cryptocurrency business.

The company has joined forces with Swiss digital bank Syngum to offer customers “a range of regulated digital asset banking services,” according to a Wednesday (April 5) announcement.

“Digital assets have become an integral part of the financial world, and our customers want access to this market at PostFinance, their trusted principal bank,” said Philipp Merkt, the bank’s chief investment officer.

The program lets PostFinance’s customers buy, sell and store cryptocurrencies such as bitcoin and ethereum. It was created in response to a “strong demand for digital investment services” among PostFinance’s customers, according to the release.

“Being a fully regulated digital asset specialist with a Swiss banking license, Sygnum … can provide a secure bridge between traditional finance and digital assets,” the announcement said.

This entry into the crypto sector by a government-owned entity is happening at a time when a number of other governments are cracking down on digital assets. For example, last week saw officials for China call for greater regulation of the industry.

Speaking at the Boao Forum, Xuan Changneng, a deputy governor at the People’s Bank of China, cited the risks and fraud associated with crypto, including the downfall of two U.S. banks that had provided financial services for crypto-related companies.

“The regulation philosophy, technology and capability must be upgraded to ensure financial innovation won’t come at the cost of financial stability,” Changneng said.

And U.S. regulators have warned financial institutions to be wary of “potential heightened liquidity risks” presented by funding from crypto-related entities, while the Securities and Exchange Commission (SEC) has taken several actions against the industry.

Even in countries that have seemed more friendly to cryptocurrencies, companies are feeling pressured.

Crypto firms in the United Kingdom said they are facing new banking difficulties, such as rejected applications to excess paperwork, leading the companies to ask the government — whose head has spoken of making the country a “crypto hub” — for help.

“There aren’t many options available,” said Edouard Daunizeau, CEO of London-based crypto investing firm SavingBlocks. “Most traditional banks won’t offer banking services to crypto firms. With the recent string of events, it will be even tougher. We are seeking licenses in France where we think it will be easier.”

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