Switzerland to Ease Crypto Regulation
July 20 2018 - 11:53AM
ADVFN Crypto NewsWire
In an attempt to regain its cryptocurrency crown, Switzerland is
planning to ease crypto regulation, as regulators step up efforts
to prevent the migration of cryptocurrency projects from the
country.
The exodus of digital currency projects is resulting in
Switzerland losing business to the likes of Gibraltar, the Cayman
Islands, and Liechtenstein.
The ‘Crypto Nation’ wants its title back
Switzerland was once known as the ‘Crypto Nation’, a title that
has been slowly waning after a tighter regulatory framework was
introduced in February 2018. Data released by PwC showed the
Swiss had dropped from second place to sixth in the amount of
Initial Coin Offering (ICO) funds countries raise, prompting the
Swiss to make a regulatory U-turn by encouraging banks to accept
the accounts of cryptocurrency organizations.
Supporters of virtual currency in Switzerland consider the
market to be central to the future of global finance.
Banks need greater access to crypto entities
The wealthy canton of Zug in central Switzerland is hailed as
‘Crypto Valley’, with around 300 cryptocurrency ventures opening in
the town in recent years. Though without access to the banking
system, many of the crypto entities are struggling to function in
Zug and threaten to leave if the government fails to provide them
with the access they need.
As Heinz Taennler, Zug’s finance director says:
“All their banking relationships are going to Liechtenstein.
These are hundreds of jobs that have been created, and every job is
important.”
Switzerland’s financial market supervisor, FINMA, is in talks
with the Swiss National Bank (SNB) about the steps needed to be
taken to ease crypto regulation and ensure banks are more
accessible to cryptocurrency ventures.
As Thomas Moser, of the SNB, told Reuters:
“We would not want to close the door on the opportunities
that such innovation (cryptocurrencies) might bring.”
Despite moves to regulate the market by introducing more
stringent regulatory frameworks this year, crypto startups have
still been attracted to Switzerland, cementing themselves in
‘Crypto Valley’.
For example, in May this year, the blockchain venture ConsenSys
announced a partnership with the
Crypto Valley Association (CVA), the government-supported
association, which has been a leading force in Switzerland’s
growing blockchain market.
At the same time, Bitfinex, the fifth largest cryptocurrency
exchange, said it was planning on moving
offices from Hong Kong to Switzerland.
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