A Liechtenstein-based bank now allows its clients to invest directly in crypto-currencies like bitcoin, in what is reportedly a first in the microstate.
is the first financial institution in Liechtenstein to offer trading in five crypto-currencies – bitcoin, bitcoin cash, litecoin, ripple and ether – and “secure safekeeping” in offline storage, the bank said last week.
Bank Frick, which offers private banking services, is somewhat an anomaly in its sector, as its rivals across the world have largely steered clear of crypto-currencies due to regulatory ambiguity, money laundering concerns and lacking fundamentals.
Bitcoin's price movements over the past month. Source: Coindesk
But crypto-currency investments made with the bank are “subject to the same strict statutory measures as traditional financial transactions,” it said, adding that clients can only invest in digital coins “once they have been fully identified and verified”. Verification involves origin-of-funds checks, Bank Frick said.
“Financial intermediaries, such as asset managers and fiduciaries, can make use of our new offering to successfully differentiate themselves in the market and add value for their clients,” Hubert Büchel, chief client officer, said. “We aim to place crypto-banking on at least the same level of quality as traditional banking.”