Knowledge

4 reasons why Zug became Switzerland’s Crypto Valley

admin-sig

Switzerland has established itself as home to the Crypto Valley, a location for emerging startups dealing with digital currency and global blockchains. The location is one of the top options for this type of companies due to its favorable technological, economic and political environment.

One of the main advantages of Switzerland is that it has flexible regulations and a political system that supports new and innovative projects in all fields, not only in the digital currency sector. Therefore, the support for innovation and a stable economy is what attracts most foreign entrepreneurs looking for investment opportunities. It also helps that Switzerland is the home of top research institutes that provide resources and support for entrepreneurial projects in the digital currency field.

In addition, Zug has emerged as a perfect location for such business ventures, due to its relatively low taxation and easy access to important research and business hubs which have been created over the last years in the area. This combination of factors is what creates excellent talent within and also attracts high skilled workers from abroad.

1.Progressive and supportive political system

Switzerland has a decentralized system, that is stable and predictable, an important environment for the development of blockchain-base projects which can take advantage of a secure legislation. In addition, the low taxation and business-friendly regulations are something to consider, especially for startups.

Although, the Swiss Financial Market Supervisory Authority has released a set of guidelines for Initial Coin Offerings in February 2018, blockchain startups don’t have to deal with stringent regulations against digital currencies. The Swiss government is open to supporting innovations in this field and several measures have already been taken, such as the creation of a blockchain taskforce.

2.Attractive location for foreign investors

Switzerland’s transparent legal system and stable economy have been two of the main selling points for foreign investors looking for a location to establish a business. Swiss cantons are basically competing to attract as much foreign investment as possible by offering various tax incentives, tax exemptions and generally speaking lower tax rates compared to other business locations.

As a large number of multinationals have established their office or they headquarters in Switzerland, the country receives substantial investment for research activities. Multinationals are contributing with approximately 70% of the total investment in research and they are also creating jobs for 80,000 people in Switzerland.

Blockchain startups can only benefit from the presence of foreign investors and multinational corporations because they can easier gain access to additional funding opportunities, they can be part of an extensive business network and initiate new business partnerships. The possibilities are practically limitless.

3.Top ranking research institutes

Swiss universities are constantly ranked among the best in the world, with famous educational and research institutes such as ETH Zurich or EPFL. Being a rather small country in terms of size and population, Switzerland has achieved much of its economic development through its intellectual potential and investment in education and research.

Technology plays and important part in the Swiss economy and in its international presence. Swiss universities often organize courses and events that bring together talented students, researchers and blockchain technology experts. Some researchers from top ranking universities often get involved in such technologies, including in the development of ethereum-based identity solutions.

Given all these factors, blockchain-based startups have the possibility to have firsthand access to experts in this field, in an environment that encourages further development of this technology and extensive research.

4.The rise of the Crypto Valley

The presence of foreign investments, progressive measures that encourage developments in all kinds of business sectors and top ranking research institutes have created a perfect environment for the creation of a digital currencies hub, similar to Silicon Valley. For now, Zug’s Crypto Valley is still in its early stages, but all the estimations show that it will most likely become bigger and better.

There is still place for improvement, especially for newcomers in the digital currency field who have to struggle with finding funding opportunities and creating strong business connections, but Switzerland and its crypto currency hub, Zug, is certainly one of the best locations for blockchain-based startups thanks to its safe, progressive and innovative environment.

In addition, the favorable tax system, the transparent legal system, great infrastructure and excellent talent available are all important advantages for Switzerland as a business location in general.

 

Share this with your friends:

LEAVE A COMMENT

To prevent automated spam submissions leave this field empty.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.