A division is stemming up between crypto-friendly states and those against crypto development. Several regions have introduced heavy taxation on crypto firms, while others banned crypto usage.
Regions that have introduced strict rules for crypto include Iran, China, and India. However, crypto-friendly nations exist, such as El Salvador, UAE, Singapore, and Switzerland. Meanwhile, countries like the US and UK are still on the fence concerning crypto regulations.
In Europe, a haven for crypto firms has emerged. The report states that Switzerland is an attractive region for crypto and blockchain firms. The nation has laws that favor crypto development.
Switzerland Opens Its Door To Crypto And Blockchain Companies
At the World Economic Forum, the state encouraged crypto firms to invest in the country. Also, Ueli Maurer, Finance Minister in Switzerland, noted that the state supports crypto activities.
In March, the country named Lugano the capital of crypto in Europe. This was after it partnered with Tether to attract crypto development to the city.
In addition, the Crypto Valley Association is located in Switzerland. The association helps to build blockchain and crypto hubs in the country.
Of recent, Bitpanda and Copper.co opened up offices in Switzerland. Copper.co, formerly in the UK, migrated after the state imposed strict registration measures.
The CEO of the company, Dmitry Tokarev, stated that: “Switzerland is an ideal location for crypto firms to grow their presence in Europe.”
Major exchange firms FTX and BitMEX have pitched their tent in the crypto-friendly state.
Switzerland Has Less Regulatory Barriers
The system of regulation that Switzerland practices are the SROs (Self-Regulatory Organizations).
However, policymakers and the Central Bank control the financial regulators in other countries. Unfortunately, these entities usually have little knowledge about the crypto sector.
Swissinfo.ch noted that:
“Swiss SROs serve as a buffer between financial institutions and FINMA (Swiss Financial Market Supervisory Authority).”
Additionally, the SROs formulate their anti-money laundering protocols and monitor compliance. Afterward, they report their findings to FINMA as a group. They do not report as individual companies.
This system of self-regulation is flexible and efficient for crypto firms. This is different in the United States and other regions with rigid rules. In these areas, crypto firms are treated as banks and stock brokerages.
Despite various regions’ strict sanctions on crypto, nations of refuge will always exist. As a result, several giants in the crypto industry are pitching their tent in Switzerland.
The country has a total of 11 SROs. However, all crypto firms will have to register first before self-regulating.
