Swiss Regulator Shuts Down Crypto-Friendly FlowBank, Initiates Bankruptcy

The Swiss Financial Market Supervisory Authority (FINMA) has ordered the closure of FlowBank, a Swiss online bank offering crypto exposure, due to serious capital breaches and concerns about its solvency. The decision, announced on Thursday, puts FlowBank into bankruptcy proceedings. FINMA cited significant and serious breaches of minimum capital requirements and stated that FlowBank's financial situation was precarious with no prospect of restructuring. The bank, partially owned by CoinShares, had attracted attention for its crypto-friendly services, including offering customers the ability to buy, sell, and hold crypto assets directly from their accounts. FINMA has appointed Walder Wyss, a leading Swiss law firm, as the bankruptcy liquidator. While depositors with up to 100,000 Swiss francs are protected and will receive their funds within seven working days, the fate of crypto deposits remains uncertain. The liquidator will determine whether cryptocurrencies are classified as custody assets, treated like securities in the bankruptcy process, or treated as “claims on the bank.” FlowBank’s website now redirects to a letter informing clients of the shutdown, and its Twitter account has been deactivated.