Blockchain in Switzerland Features New Working Group
The past year has seen such a major shift in blockchain in Switzerland, pushing it to the top of the financial development agenda. This explosive growth in interest and companies moving to Switzerland to conduct blockchain business has even convinced the Financial Director of Zug, Heinz Tännler to organise a working group for blockchain companies in Switzerland. The Swiss Bankers Association or the SBA was requested by Tännler to form the working group to allow blockchain companies easier access to Swiss bank accounts.
Currently, blockchain and crypto companies in Switzerland are having trouble registering and launching their business in Switzerland as it’s hard to open a bank account. The Financial Director of Zug has acknowledged this as a major issue and has paired with the Financial Director of Zurich to highlight the issue for the Federal Council. This has shown Switzerland’s true feelings on the blockchain boom, and this move should certainly restore faith in all blockchain and cryptocurrency companies looking at Switzerland.
The major reason behind the working group for businesses in blockchain in Switzerland was to cut off and restrict other countries from effectively ‘poaching’ businesses that would have chosen Switzerland as a place to operate. Losing business in this lucrative and fast-growing market could present a major issue – hence the push for a working group.
Switzerland’s Grasp on Innovation
The Swiss business environment is surrounded by innovation, and if you’re looking to step into blockchain in Switzerland then you’re sure to be right at home here. The Financial Director of Zug even touted that blockchain presents an unequalled potential for innovation in Switzerland and that the industry is one of the most innovative – leading with the fact that the Swiss government must not continue with the current standing as ‘it makes payment transactions [for blockchain] impossible.’
Further showing Switzerland’s feeling on the issue, the biggest leaders in finance have pushed forward for the blockchain working group, including representatives from the Swiss National Bank, the State Secretariat for International Financial Affairs and even the officials at FINMA and the official financial team from Zurich and Zug. The meetings and conferences all came with the conclusion that a working group for blockchain in Switzerland has to be established and that banks are to allow blockchain companies in Switzerland to open accounts easier. FINMA will also make the push for these changes.
If you’re already in the blockchain industry or looking for some assistance with opening a bank account in Switzerland, then feel free to reach out to us. Our team will be able to streamline the entire process and get your blockchain business up and running in no time.
Banking Law and Blockchain in Switzerland
One of the leading reasons why banks were previously blocking the ability of blockchain-based companies to open bank accounts was down to the lack of legal certainty around the movement of funds and the ability to restrict or block money laundering.
In June of this year, Hypothekarbank Lenzburg became Switzerland’s first bank to allow a business bank account to be opened by a crypto and blockchain business. A real breakthrough for those looking to launch a business in blockchain in Switzerland. On top of this, Falcon Private Bank’s CEO has also stated that the company is the first to open company accounts strictly for blockchain and crypto businesses.
Back in May, Polish banks decided they wouldn’t cooperate with BitBay – one of the largest cryptocurrency exchanges in Poland. This tough stance against crypto caused BitBay to stall and stop all activity in Poland and migrate to the Republic of Malta where laws for crypto are far more friendly. This is the main reason behind Switzerland looking to become as friendly as possible for crypto and blockchain companies – to keep business within Switzerland.
Registering a Currency & Launching an ICO
In Switzerland, the blockchain and cryptocurrency field is highly developed and the Swiss government wants the field to be attractive, so much so that officials have developed laws and regulations that favour and entice crypto and blockchain companies to choose Switzerland as the base country to develop.
If you’re looking to develop a blockchain company in Switzerland then there are a few things you should know. The first being that the canton of Zug is primarily the best location for crypto and blockchain companies thanks to its low tax rate, low regulation and ease of set up.
Zug is also nicknamed the Crypto Valley, for obvious reasons, making it a great location to start your crypto or blockchain business. Zug is also home to the Crypto Valley Association, which means you’re directly in the thick of the crypto world and will have access to legal teams and assistance from countless associations – making your chances of succeeding far greater than anywhere else in the world.
If you need some more information on banking changes for blockchain in Switzerland or any other information from our legal team, then don’t hesitate to reach out to us.