Switzerland to Become the King of Cryptocurrencies
We are living in the age of the cryptocurrency. Crypto is taking over the world and Switzerland is hoping to become its home. Switzerland is the hot jurisdiction from which to operate a crypto exchange. Here’s what you want to know about Switzerland’s plan to become the king of cryptocurrencies.
Switzerland, and the canton of Zug in particular, are making a push to become the center of the cryptocurrency world. This country has passed numerous laws, and focused on Crypto, over the last year, to support the industry.
The reason why cryptocurrency is so attractive is that it isn’t restricted or weighed down by other jurisdictions. So, you can build your crypto business wherever you’ll be treated best. The top to contenders in Europe are Estonia and Switzerland, with the big dogs moving to Switzerland and the budget conscious setting up in Estonia.
Estonia is a small country located in Eastern Europe that has been experiencing a growth based on its digital and crypto programs. Estonia’s E-Residency promotes international investment, but its acceptance of cryptocurrencies is what is making the country an example for others.
Many ICOs have begun operations in Estonia, as they seek for a place with minimal government obstacles. Forming your business in Estonia is inexpensive. The problem then becomes finding a bank willing to open an account for you.
For a century, Switzerland was the wealth management capital of the world. They lost most of this luster when the US broke down Swiss privacy in 2005. Today, nearly all governments and tax authorities can access your Swiss bank records.
Cryptocurrency is another matter. These are not banking entities and regulations are reduced. Thus, Switzerland is hoping to reclaim it’s privacy and financial crown by becoming the home to top exchanges.
Bitcoin and other cryptocurrencies still need to go a long way before they can start competing with the Swiss financial industry, but investing in cryptocurrency means investing in the future.
When many ICOs arrived in Switzerland, specifically in the city of Zug, industry experts deemed Zug cryptovalley. During this period more than 200 companies began operations in the Swiss city generating millions in revenue and creating thousands of jobs.
Switzerland is looking at ways in which there can be some sort of merger between the banking and the cryptocurrency industry. One way to achieve this will be by making banks accept cryptocurrency payments or at least more accessible to them.
Certain heads of Swiss banking institutions are already researching ways on how to make cryptocurrencies more appealing for customers, but this is not going to be easy. There is still a long way to go.
The many things that make cryptocurrencies so appealing to customers are the same things that scare banks from investing in them. The fact that Bitcoin is not regulated or controlled by one entity is what makes the idea of merging with a bank so difficult. This, in turn makes compliance (KYC, AML, compliance, etc) a challenge.
You’ll find that Switzerland is NOT the low cost crypto jurisdiction. The reason it’s the top pick is because of its people and infrastructure. Switzerland has world-leading infrastructure in energy, transportation, telecommunications, financial services, education, health care, environment, safety, and technological innovation.
Likewise, Switzerland has a high quality educational system, with many top-ranked educational institutions. It spends more on R&D per capita and is among the countries which produce the most Nobel laureates per capita. Switzerland is ranked number 1 in the world for ease of attracting and retaining world-class talent. While Swiss compensation rates are high, this does not necessarily translate into higher labor costs because of the exceptionally high productivity levels. The Swiss work systematically and accurately, they are innovative, they are self-starters, and they are honest. In Switzerland, you get what you pay for. This is especially true for creative intellectual work such as software engineering.
Finally, Switzerland is ranked number 1 in the world for competitiveness and productivity – the key drivers of economic growth and quality of life.
All of these benefits cost money. If you want to operate in a top jurisdiction, then consider setting up your exchange in Switzerland.
I hope you’ve found this article on Switzerland and cryptocurrency to be helpful. For more information, or for assistance in starting an exchange in Switzerland or offshore, please contact our office HERE. I’ve included some really great articles for you to read, enjoy!
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