The Swiss Financial Market Supervisory Authority (FINMA) has informed cryptocurrency trading platform Bitcoin Suisse that its banking license application has an “unfavourable prognosis”, deeming it ineligible for approval.

Bitcoin Suisse had previously submitted an application for a banking license in 2019.

FINMA said in a statement that “various elements that are relevant under licensing law make it unlikely that a license will be granted. Among other things there are indications of weaknesses in the money laundering defence mechanisms”.

Following this decision, Bitcoin Suisse AG informed FINMA that it is withdrawing the application leading the Swiss regulator to terminate the licensing procedure.

Bitcoin Suisse is a financial intermediary domiciled in Zug that specialises in the cryptocurrency business. The company is not supervised by FINMA but is, however, subject to supervision by an anti-money laundering self-regulatory organisation.

Bitcoin Suisse had previously secured CHF 45 million during its Series A funding round, claiming to push its valuation at CHF 302.5 million.