Banks across the world have shown particular disliking towards cryptocurrencies since the launch of bitcoin in 2009, right after the global financial crisis of 2007-2008. The digital currencies represent a threat to traditional financial organizations as they aim to be completely decentralized and controlled by the people rather than by banks. In addition, lawmakers and governments across the globe are completely against the 21st-century currencies and are attempting to ban them or regulate them to counter illegal activities. However, in some countries, banks and governments are more open to the blockchain technology and to coins and tokens. These particular nations, like Israel or Venezuela, show a desire to understand the opportunities that come with them and want to make them legal. A bank in Liechtenstein is now opening up to cryptos, which has almost never happened before.
Bank Frick has announced that its clients will soon be able to purchase and invest into cryptocurrencies directly through the bank. A variety of digital currencies will be available for purchase, including ethereum, ripple, litecoin, BTC, and bitcoin cash. These are some of the biggest and most popular coins at the moment in the space.
The bank has announced that it will be extremely careful with the law and with compliance issues. Each investor will be meticulously reviewed and verified. Furthermore, the bank will check where the money comes from before allowing any investment (or trade). The statement reads: “Clients can only invest in cryptocurrencies once they have been fully identified and verified. The verification and identification process also involves checking the origin of the money used to invest in them“.
The bank is opening up this option of purchasing virtual currencies to companies and businesses with large amounts of money to invest. In addition, Bank Frick is hoping to attract high-profile investors and private clients that could potentially be interested in cryptocurrencies. The purchased coins and tokens will be stored in cold storage, wallets, and security will be one of the benefits brought by the bank.
This announcement comes as a surprise since cryptocurrencies were created for individuals to be able to “break free” from banks and other financial institutions. However, some people believe that banks “adopting” digital currencies is the only way for them to start taking over the world of finance. Will we see other banks follow Bank Frick in the near future?
TLDR: Bank Frick, a bank in Liechtenstein, has announced that it will start allowing its customers to purchase and trade cryptocurrencies directly. This is one of the first time it happens and it could lead to other banks doing the same.