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Ex-UBS bankers raise funding to get a Swiss cryptocurrency bank

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Seba Crypto AG, a Swiss financial services company run by ex-UBS Group AG bankers, said hello raised money as it seeks to become among the list of world’s first regulated banks and let consumers trade fiat money into cryptocurrency.

The Zug-headquartered company said it secured 100 million Swiss francs ($104 million) from private and institutional investors with the venture, which happens to be determined by being granted a banking license from Finma, the Swiss financial regulator.

Seba founder Guido Buehler, who previously worked being a managing director of asset servicing at UBS, said his company has been doing talks with Finma since April. One further application for the license might be submitted after October, he said.

Switzerland is attempting to embrace cryptocurrency by positioning the lakeside area of Zug — a canton best known for low corporate tax rates — as “crypto valley.” Finma issued guidelines recording to companies wishing to raise money by selling their particular digital currencies, after shutting down several coin providers for working without getting a banking license.

A spokesman for Finma said the regulator has witnessed more license applications from crypto-related companies. “We are investigating every application and pursue a neutral method to business models and technology,” he stated.

Black River Asset Management AG and Summer Capital are the blend of local and international investors backing Seba. Buehler said some of the money might be used to make the new financial entity, as you move the rest goes toward capitalizing the bank account then it may offer investment protection.

The company employs 17 people and offers greater than double this figure after 2019, Buehler said, with offers expand to Singapore and Europe next within an undetermined time, and also to raise additional funding diligently searched banking license is obtained.

Buehler said he intends for Seba customers to be ready to hold and trade both fiat and cryptocurrencies, and also for the lender to offer you investment and asset management services. “Our vision is when you join to your internet banking, you’d can access crypto and fiat within one account,” he stated.

The valuation on digital currencies has plumbed to new depths in the past quarter or so, as well as surpassed the Nasdaq Composite Index’s 78% peak-to-trough decline after the dot-com bubble burst in 2000.

But Andreas Amschwand, Seba chairman and former UBS global head of forex, isn’t overly concerned.

“Market decline isn’t impacting my view,” he stated. “Short-term volatility is not going to undermine long-term validity of digital assets.”

? 2018 Bloomberg L.P

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