Swiss Financial Market Supervisory Authority Forces a Crypto Bank’s Bankruptcy

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Following an investigation by the Swiss financial regulator, FlowBank, an online Swiss bank, has been forced to declare bankruptcy due to its failure to meet required banking standards.

On June 13, the Swiss Financial Market Supervisory Authority stated that the bank did not have the minimum capital necessary to continue its business operations, leading to the decision to shut it down.

FINMA also expressed concerns over the bank’s high level of indebtedness and concluded that it must be wound up due to its major violation of the requirement to hold sufficient capital.

Despite launching in 2020 with a focus on cryptocurrency trading services and partnership with stablecoin issuer TrueUSD, FlowBank was unable to survive the scrutiny of Swiss regulators.