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Start a Company in Crypto Valley
This text duly revised and updated by our attorneys 21.11.2023
In Zug, the economic sector and its' framework have been dramatically enhanced over the last decade. The canton has massively migrated from traditional economic fundamentals like manufacturing and fishing, to become one of the most modern and advanced economies in the country. This has earned the canton the nickname, 'Crypto Valley,' for obvious reasons.
The canton of Zug, from a global standpoint, is viewed as one of the most stable and attractive locations for the investment and development of blockchain-based cryptocurrencies as well as other fintech businesses.
Crypto Valley is home to some of the lowest corporate taxes in all of Switzerland, and the government has introduced regulations and frameworks to allow the seamless development of fintech businesses. There are even government-backed associations which exist solely to help companies develop their technology and manoeuvre through the Swiss Government's legal frameworks.
If you need some assistance from our legal team when investing in or developing a Swiss cryptocurrency in Crypto Valley, then feel free to reach out to us. We'll be sure to give you any and all information you need.
The canton of Zug, from a global standpoint, is viewed as one of the most stable and attractive locations for the investment and development of blockchain-based cryptocurrencies as well as other fintech businesses.
Crypto Valley is home to some of the lowest corporate taxes in all of Switzerland, and the government has introduced regulations and frameworks to allow the seamless development of fintech businesses. There are even government-backed associations which exist solely to help companies develop their technology and manoeuvre through the Swiss Government's legal frameworks.
If you need some assistance from our legal team when investing in or developing a Swiss cryptocurrency in Crypto Valley, then feel free to reach out to us. We'll be sure to give you any and all information you need.
Crypto Valley Regulations
The legal frameworks and business classifications in Switzerland, as well as in the Crypto Valley of Zug, list cryptocurrency companies as financial service businesses. That means that if you are intending to operate publicly then you will have to get approval from the Swiss Financial Market Supervisory Authority also known as FINMA.
The good news here though is that as fintech companies begin to pour into Switzerland, the officials at FINMA aren't requiring them to obtain a specific licence at this point in time – meaning that there isn't yet a solid legal framework for cryptocurrencies.
As a general guideline though, a cryptocurrency developed and operating in the Crypto Valley will need to follow any and all rules outlined in the Swiss Anti-Money Laundering Act. There is no bypass of this under any circumstance and the failure to meet the requirements listed in this act can result in damaging and almost crippling fines and penalties.
Due to this, it's a good idea to speak to a legal team to ensure your operations are in compliance with this Act.
Provisions
As an example, operations listed below will need to comply with the Anti-Money Laundering Act in order to operate without the risk of penalties:
The good news here though is that as fintech companies begin to pour into Switzerland, the officials at FINMA aren't requiring them to obtain a specific licence at this point in time – meaning that there isn't yet a solid legal framework for cryptocurrencies.
As a general guideline though, a cryptocurrency developed and operating in the Crypto Valley will need to follow any and all rules outlined in the Swiss Anti-Money Laundering Act. There is no bypass of this under any circumstance and the failure to meet the requirements listed in this act can result in damaging and almost crippling fines and penalties.
Due to this, it's a good idea to speak to a legal team to ensure your operations are in compliance with this Act.
Provisions
As an example, operations listed below will need to comply with the Anti-Money Laundering Act in order to operate without the risk of penalties:
- Buying or selling bitcoin for any commercial purpose
- Operating on any trading platform.
Tax Advantages of Crypto Valley
The tax advantages in the Crypto valley are some of the most attractive and business-friendly in all of Switzerland. As a quick example, the crypto companies operating in the Crypto Valley aren't even required to pay VAT as the tax isn't enforced upon Bitcoin transactions.
On top of the removed VAT, investors can even benefit from the global connections that Switzerland has with other nations – meaning you'll be able to bypass double taxation. Those are just a few of the perks of choosing to launch a company, especially a fintech company in Crypto Valley.
If you need some extra assistance with your launch or the laws in Crypto Valley, feel free to reach out to our legal team and they'll make sure you're on the right track.
On top of the removed VAT, investors can even benefit from the global connections that Switzerland has with other nations – meaning you'll be able to bypass double taxation. Those are just a few of the perks of choosing to launch a company, especially a fintech company in Crypto Valley.
If you need some extra assistance with your launch or the laws in Crypto Valley, feel free to reach out to our legal team and they'll make sure you're on the right track.