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Not Enough Capital, Swiss Regulator Closes FlowBank Crypto Trading

Liputan6.com, Jakarta Swiss online bank FlowBank, which offered cryptocurrency trading services, has closed its services and was forced to go bankrupt. The closure was because the Swiss financial regulator found the bank had violated operational standards.

This step became necessary because banks no longer have the minimum capital required for their business operations,” said the Swiss Financial Market Supervisory Authority (FINMA) in a statement, quoted from Cointelegraph, Saturday (15/6/2024).

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“There is no prospect of restructuring, and there are concerns that the bank is over-indebted,” FINMA further said.

FINMA also said that the results of the investigation showed that Flowbank did not fulfill its obligation to have sufficient capital to run a banking business.

Swiss financial regulators first took enforcement action against FlowBank in October 2021, when they identified serious violations of supervisory laws, particularly with regard to capital requirements.

An independent auditor was appointed 12 months later to monitor FlowBank's compliance.

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FINMA appointed another supervisor to monitor FlowBank's financial activities and further investigate its compliance failures in June 2023 as more problems emerged

The investigation uncovered many high-risk business relationships and processing large transactions without conducting proper due diligence, according to FINMA.

FINMA then ordered the revocation of the bank's license on March 8 2024. However, this decision does not yet have legal force because it is still pending appeal at the Swiss Federal Administrative Court.

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Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling Crypto. Liputan6.com is not responsible for profits and losses arising from investment decisions.

Not Enough Capital, Swiss Regulator Closes FlowBank Crypto Trading

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