Switzerland – the Country Which Has Become Cryptocurrency Paradise
Switzerland is on the first place out of ten most crypto-friendly countries in the world. Positive treatment of cryptocurrencies, welcoming taxation environment and government’s support have made the country a desirable place for technological development and a paradise for crypto enthusiasts.
Switzerland, Crypto Sector and European Union
What are cryptocurrencies? “Private money” in Germany, “utility and security tokens” in France and “transferable value” in Denmark. In Switzerland, however, cryptocurrencies are defined as assets, therefore, they don’t fall under strict regulations.
Moreover, since August 1, 2017, the country has introduced new simplified policies regarding fintech business management to make the sector more accessible for blockchain companies and startups.
For instance, several amendments have been added, such as the amendment to the Banking Ordinance (BankO). According to it, accepting public funds up to CHF 1 million, firms could apply business models without authorisation.
The simplifications of the rules were suggested with the purpose to enhance the competitiveness of the Swiss financial area.
How Does Switzerland Support ICOs?
Talking about ICOs, according to the PwC report, in the first 5 months of this year, 537 ICOs have been successfully conducted. The amount of capital raised is USD 13.7 billion, which is more than all ICOs launched before 2018 combined have raised. Switzerland has played one of the main roles in the process, remaining a key global ICO hub.
For support of initial coin offerings and Blockchain in general, the Swiss Financial Market Supervisory Authority (FINMA) has released guidelines for regulating ICOs. They are mostly treated as securities with some exceptions for utility tokens and means of payment.
What Has Crypto Community Already Done in 2018?
Switzerland is an outstanding country in a way how it applies DLT in various industries apart from finances and shows the innovative practical use cases.
- First municipal voting with Blockchain
On July 1, the Swiss Crypto Valley has successfully completed the testing of the DLT-based voting system. For the purpose, Zug’s electronic ID system was used, and utilizing DLT, the process was completed without the single server. According to the results, most of the partakers found the system easy and convenient.
- University diplomas secured by blockchain
The innovative system was introduced by the University of Basel. By registering certificates on ETH smart contracts, the information will be easily verified and protected from fraud.
- Crypto events
As the country has the active crypto community and many developing crypto businesses, it hosts many blockchain conferences, events and shows. The purpose of conducting such meetings is to pay attention to DLT, study and analyse its applications and possibilities. One of the upcoming large crypto events is the Blockchain & Bitcoin Conference Switzerland.
- Cargo handling with DLT
Swissport, the provider of aviation services, together with Olam have launched a program for goods transportation. Integrating DLT in the industry, companies are planning to speed up the transactions, improve security and reduce operational costs by eliminating the paperwork.
- First Blockchain-based smartphone
The smartphone developer Sirin Labs plans to release a DLT-based mobile phone in November 2018.
The company has already raised $157.8 million for this purpose via ICO. The innovative smartphone called Finney will cost around $1,000 and will combine a crypto wallet, TCS, and DApps store.
- Leading other industries
Switzerland is not only a pioneer in many DLT uses but also a leading developer of the technology in other spheres. The country has corporations implementing Blockchain in data storage, supply chains, right protection and insurance sector.
Switzerland Inspiring Other Countries
Switzerland shows a lot of practical uses of Blockchain and innovative technological solutions, encouraging other countries to follow its steps.
South Korea, for example, is going to create a ‘Crypto Beach’ similar to Swiss ‘Crypto Valley’.
The Korea ICT Financial Convergence Association has announced the construction of the Blockchain center at the Haeundae beachfront in Busan.
Doing this, the company’s chairman plans to raise the government’s understanding of DLT and eliminate the current ban on ICOs.
It is not a surprise that Switzerland is considered a crypto paradise, and all the facts confirm its status of the advanced country regarding cryptocurrencies, blockchain and ICOs.