Switzerland Opens Door To Bitcoin Asset-Management Business

Tyler Durden's picture

Bitcoin and other cryptos have fallen sharply over the past month in a shakeout that saw some of the early longs decide to take their winnings and walk away. But a 20% drop from the all-time highs hasn’t done much to temper wealthy investors interest in bitcoin and other cryptocurrencies as alternative investments potentially worthy of diversification. And with the Greyscale Bitcoin Investment Trust still trading at a ridiculous premium, and the chances of the SEC approving a bitcoin ETF in the US looking increasingly remote, it’s unsurprising that “private wealth managers” and trying to scoop up wealthy customes who have expressed an interest in bitcoin.

But while regulators in the US and in many other part of the developed world have been hesitant to embrace bitcoin, Switzerland may have just given the world's private-wealth specialists the opening they needed.

According to Reuters, private bank Falcon announced Wednesday that it would immediately begin storing and trading bitcoins on behalf of its wealthy customers via the bank's cash holdings, a move that signals the traction the virtual currency is gaining even in slow-changing asset management.

Falcon received approval from Swiss regulators, marking the first time they’ve authorized a Swiss private bank to work with bitcoin, according to CNBC.  The decision could prompt other global regulators to loosen restrictions on bitcoin, potentially launching the the global cryptoasset-management industry in earnest.

The decision follows the CFTC's approval last week of the first bitcoin Swap Execution Facility in the US, which opened the door to centrally-cleared bitcoin options and other derivatives that would make it easier for CTAs and hedge funds to speculate on the cryptocurrency.

Falcon made headlines during the investigation into 1MDB, the Malaysian sovereign wealth fund that was exposed as a private piggy bank by Malaysian Prime Minister Najib Razak. Investigators in Singapore shut down the local units of Switzerland's BSI Bank and Falcon Bank due to failures of money laundering controls and improper conduct by senior management. They also froze millions of dollars in customer assets and charged several private bankers, according to Reuters.

But now the bank, which is partnering with cryptocurrency broker Bitcoin Suisse on the bitcoin asset management project, views its it as a way to change the narrative and help burnish the bank’s suffering brand.

"We are proud to be the first-mover in the Swiss private banking area to provide blockchain asset management for our clients," Arthur Vayloyan, Falcon's global head of products and services, said in a statement.


"Falcon is convinced that the time is right to enter this nascent market and it is our firm belief that this new product will fulfill our clients' future needs," he said.

Will the decision inspire US regulators to follow suit and grant the wishes of every HNW investor who wants some exposure to bitcoin in their retirement account? It certainly gives the US asset-management a powerful argument to wield against regulators: They’re doing it so why aren’t we?

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nope-1004's picture

Cuz banks truly care about all their customers....



38BWD22's picture



You don't need a bank, or even a private wealth manager, to buy Bitcoin.  

tmosley's picture

>shakeout that saw some of the early longs decide to take their winnings and walk away

I somehow doubt that. Where's the source for this assertion?

Seems to me this is something more along the lines of ICOs draining money out of the complex for capital investment, given the timing.

Crypto Kevin's picture

Exactly! That's the point. Cut out the bankers and let people transfer bitcoins directly between each other. Why would anyone want to get the bankers involved?

Justin Case's picture

Bankers will invite themselves, like the US military invites themselves to provide protection. Right? We all need protection, but it's protection from the Gov't that people seem to always vote for. Stop voting. It's harmful to yoar financial health.

Sudden Debt's picture

Go to Bitpanda and look for the buy and sell limits.

Most standard limits have now a 1000 euro max selling level and 50 euro buy per day limit.

And visa is'nt allowed anymore for these customers.


They're cracking down on bitcoin in a serious way. You now have to buy bitcoin with verified bank transfers, you can't transfer coins...

The new customer influx in bitcoin will simply stop and that will kill the price.

Banks are cracking down and they're just not doing it publicly out loud.

And that's why bitcoin is going down and will keep going down. The entry level alone, it takes you A MONTH to buy 1 bitcoin with a standard accouny!!!

And 3 days to pull 1 bitcoin out!

And check out that ID verification app! That's extreme fascist payment styles!


tmosley's picture

>Go to some exchange no-one has ever heard of before

Smells like fear and soiled pants in here.

GoldVu's picture

Might be best to avoid not just Bitcoin, but all unbacked cryptocurrencies. They're not worth the electrons they're printed on.

There is a soon to be launched digital currency that is 100% backed by vaulted physical gold & silver bullion called BullionCoin - http://www.goldvu.com/bullioncoin.html

All holders of them can redeem them in exchange for the physical gold & silver backing it. Therefore you don't have to worry so much about the internet being turned off - you can still get your gold & silver sent to you.

Some of the unique aspects are:

  • All coin creators will receive a portion of the transaction fee specific to the coins they created, forever (as long as the coin is still in circulation). Therefore it will be never ending passive source of income. The fee is charged to the buyer.
  • All merchants accepting it will be paid 0.33% of the value accepted. That payment comes from the fee charged to the buyer - normally the banks charge the merchant 2-4%!

People that invest during the founding window will get double the revenue for the coins they created during that window.

The whitepaper will be issued shortly - the above link provides you with a sneek preview of what's coming.

Urban Redneck's picture

In Switzerland, there is NO SUCH THING as "private banking" or a "private bank" it is literally a MEANINGLESS term used by lower class euro trash in various marketing departments to sucker in fuckwits.  

Reuteurs HR must be scapring the dregs from bottom of frat house kegs to fuck up basic finance stuff like this.

The only term in Switzerland with legal standing is Banquier Privé (German- Privatbankier, English- Private Banker), becuase the BANKER himself has liability for his actions, Corporations by definition are liability shields, which is is antithetical to the notion of the actual banker being personally liable.  


Tyler should know better than the copy and paste from Reuters without thinking. Falcon Bank is NOT a private bank, it's where dirty foreigners go to park their money.   

The only correct use of the word "private" would be "Falcon Private Bank Ltd." - the actual registered company name.

trader1's picture

you know Falcon used to be AIG? ;-)

enfield0916's picture

What will these virtual cuntrencies retards do if the govt decides to activate the kill switch on the internet?

You can't eat your fucking bitcoins, can you? LOL!

Get acclimated SHEEPLE, get acclimated to the future chip in your fucking ass, err we mean arm 24/7! (Public Service Announcement from your TBTF Banking Overlords).

tmosley's picture

We'll just hop on the flying pigs and head down to hell to marvel at the frozen landscape.

Crypto Kevin's picture

You can't eat your gold either. If you still insist on masturbating on your pile of pet rocks while waiting for your Mad Max fantasy to play out that's fine. I on the other hand will embrace the future.


Well, the pile of pet rocks has been a store of value for over 5000 years. 

Crypto unicorn fart clown bux ?

Not so much.

Hedge your bets accordingly.  

tmosley's picture

>Horses have had value for over 10,000 years

>Automobile unicorn fart clown companies?



Transportation is transportation, dick wad. 

Everybody needs it, everybody buys it.

Horses, to cars, and probably back to horses again.  

Maybe you oughta bone up on how to de worm, float teeth, trim hooves and shoe horses hot and cold as well.

Hope you have plenty of tack too, or a good saddlemaker in your neighborhood.

Specialists better have a real world specialty to fall back on, because pushing zeros and ones around on a computer ain't gonna cut it.

See ? Every time you try to pigeon hole some one, it backfires on your sorry ass.

Bam!  - that left hook was for Kaiser - you been taking pot shots at him outta nothing but spite for a while - go massage that out of your glass jaw.  

tmosley's picture

>Transportation is transportation

>But money isn't money


>You have to learn how to take care of obsolete technology for reasons that don't exactly match my argument.



Hey, turd eye - you don't have an argument - you are standing there out by the wood pile flailing around like y'all are having a seizure. 

Cars are real. Horses are real. Silver is real. Gold is real. All posessable commodities, held under your personal control.

Skills and knowledge are real, and you can survive in the real world if you have useful skills. 

Electronic pretend money ? Kinda like Real Networks, Infospace, and a host of other magic bean sure fire things that have all come and gone. 

Like a Snapchat IPO - wtf is that shit worth ? 

tmosley's picture

Are you saying that all programs and the internet are worthless?

Are you REALLY trying to make that argument?

Because if that is the case, I'm going to laugh at you some more.

Actually, I know that that is the argument you are making, so I am already laughing at you.



Ad homo nem bullshit response. With respect to your gender confused persoanlity.

Hedge accordingly, or the future is gonna beat your ass into submission.

You probably were a big Infospace guy, loved Lehman Brothers, Bear Stearns, Enron, and a host of other bedrock institutions that proved that over valuing intangibles relative to the resources thet those companies supposedly were based upon is  economic suicide.

Nobody knows when to hold 'em, and when to fold 'em 100% of the time.

I have more faith in the value of useful skills and commodities I posess relative to the next cool thing being pimped out to the masses.  

tmosley's picture

Hahahaha, buggy whips it is. They worked for thousands of years, after all!

Mustafa Kemal's picture

"What will these virtual cuntrencies retards do if the govt decides to activate the kill switch on the internet?"

Dude, if that happens, you have a whole lot to worry about than the loss of a few bitcoin.  It doesnt have to be either-or.

"You can't eat your fucking bitcoins, can you? LOL!"

No, I also cant eat my Au, my Ag, or my Pb.

dark fiber's picture

Remember the Swiss bank debacle of 2007-2009?  Just imagine, a debacle with fully traceable coins.  Oh the humanity.

troubadourcapital's picture

Morgan Stanley's headline today: Bitcoin demand (non speculation) is shrinking, not rising

Kaiser Sousa's picture

dont hate the messenger....

"Retailers were already skeptical about letting customers pay with bitcoin before the cryptocurrency’s price underwent an astronomical rally this year. That rapid surge hasn’t made them any more accepting. In fact, it may have done the opposite. Bitcoin is currently accepted at just three of the top 500 online merchants tracked by the trade publication Internet Retailer, down from five last year, Morgan Stanley payments analyst James Faucette wrote Wednesday in a report, highlighting the "striking" discrepancy between virtually no merchant acceptance and bitcoin’s recent gains.

"Bitcoin owners are reluctant to use the cryptocurrency given its rate of appreciation, more evidence that bitcoin is more asset than currency," Faucette said. "Way easier to trade speculatively than convince new merchants to accept the cryptocurrency."


mrtoad's picture

Interesting considering I can pay any bpay bill in Australia with bitcoin and the tax office have recognised it. Using Morgan Stanley analysts to talk bitcoin?

Kaiser Sousa's picture

actually i was just sharing the story...

i could give a "you know" about ya'lls Crypto-shit...


tmosley's picture

Propogating misinformation for your own profit.

True scum.


Fuck off, Mister Pump at the top, dump and run. 

We know, you heap big siver wampum guy since - wait for it - 2007 !


Mosley heap big voice of experience, like squaw with period.

Now, you heap big magic bitcoin bean pumper.

Bit of the pot calling the kettle black, dontchya think ? 

tmosley's picture

Would you like some cheese to go with that whine?


Nah, any cheese you might have is probably as sour and moldy as your attitude. 

You were great, once.

Now, you are just one step from selling steak knives on late nigh tee vee. 

" But wait, there's more ! "


tmosley's picture

My God your tears are tasty. Never thought I would be silvercuck tears in such excessive quantities.

It's like I'm on Reddit!


You just can't get it up any more, Mosley.

Sad, tired fucked out response - limp dick flat on the floor tapping out Fight Club ex hero goes down for the count. 

See you in the alley, Rocky. 

tmosley's picture

Your resistence only makes my penis harder.


S'okay - always had a feeling you were gender confused, gender challenged. 

I rest my case. You shoulda pleaded the Fifth.  

tmosley's picture

I plead for a better looking woman the fifth time I fucked your mother last night.

Best part is, she only takes crypto, like all the other whores!



Oh, cool, now you have reverted to the intellectual response level of Fonestar. 

Badump, Psshhh. Thank you, thank you very much.

I'll be playing at the lounge all week long.

How does it feel to get bitch slapped into the middle of next week ?

You really have to work on your back hand and follow through.

Your serve and volley are weak, too.

Go see a pro.  

tmosley's picture

You are the one who initiated this argument free thread by replying to my actual argument with a non-argument.

But your butt is hurt, so I understand. Run home to mama, maybe she will kiss it and make it better. And give you an allowance out of ther Social Security check so you can pay your bills this month.

slightlyskeptical's picture

Only 20 million bitcoins. Hope thy are using blockchain to match the option buyers and sellers, otherwise this will become a "fake" market in no time.

taipalag's picture

It can be subdivided you know.

Prisoners_dilemna's picture

SS is correct. Off-chain transactions could lead to fraudulent sales, ala Warhouse Receipts and Naked Short Selling.


If you don't hold the keys, you don't own it.


On a good note, any bitcoin holder can simply check the public ledger to verify there aren'y any shenanigans going on.

tmosley's picture

This will happen. There is at least one decentralized exchange that I know of, though it doesn't interface with many coins. Another is in the works (at least one) that will work with all the big boys as well as gold, silver, and fiat currencies via the Ripple network.

Dunno if any of them offer options or not. Haven't tried any of them yet.

Bopper09's picture

Just stocked up on some antshares (Neo) yesterday.  Nice.  Look into them, it sounds like Alibaba is going to be using their technology.  I thought I'd dabble, I've stocked lots of physical silver the last decade, so wanted to see what it was all about.  Bittrex is the only place to buy it in the west though.  But I at least know a bit of what the market is about now, and not complete Japanese when I'm listening to gold guys talking about it.

mrtoad's picture

sign up to etherdelta also. its a decentralised exchange. all the coins that work on ethereum are able to be traded on etherdelta. Look into populous (ppt) coin, it will be huge.

mrtoad's picture

theres a coin called iconomi using blockchain technology to do this very thing.

Rebelrebel7's picture

Lather, rinse, repeat.

It all comes out in the wash.

adr's picture

Well banks were trying to sell worthless physical assets to people for a very long time. 

Someone finally figured out how to sell something that doesn't exist to people for a ton of money, and they're willing to go along with it. 

tmosley's picture

Sort of like how software and the internet don't exist, and aren't worth trillions of dollars.