Switzerland Places Itself The Blockchain Capital of the World

; posted on
May 3rd, 2018

After the 20% decrease in the banking institution number during past decades, Switzerland has put forward a new plan to battle against this loss. Johann Niklaus Schneider-Ammann, the Swiss Minister of Economic has indicated to support the in-country cryptocurrency startups and transform the country into the “Blockchain Capital of the World.”

Crypto-Tax Treatment in Switzerland

Currently, four out of the top ten Initial Coin Offer (ICO) ICOs had landed in the country in 2017. Benefitting from the domestic business-friendly banking system, lower taxes, and high education rate, Switzerland aims at establishing a second “Silicon Valley” for cryptocurrencies, especially for the start-ups. For example, Zug, a small town with barely 120 thousand inhabitants, is becoming the heart of cryptocurrency development and the location of the first Bitcoin automatic teller machine. The favourable tax rate of 14.6% therein attracts a group of start-ups, which contributes significantly to the local economy.

Potential Pressure and Risks

Despite certain positive outcomes in crypto-growth, the “Crypto Nation”, as Johann called Switzerland, will face potential pressure from the US, which controls the majority of global cryptocurrency transactions and is famous for its startup-friendly environment. In addition, the notably high operating cost and living cost could pose new challenges to start-ups as well. 

Sources: Bitcoinist, CoinFrenzy

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