This article was taken from the recent IR Global – Meet the Members publication
There has been significant blockchain-related activity in Switzerland during the last six months, the majority of which has been centred on the ‘Crypto Valley’ in the canton of Zug. Switzerland’s blockchain and crypto heart.
Below is a summary of the key developments;
• Foundation Ethereum: The legendary Foundation Ethereum was established on 9 July 2014 in Zug.
• Crypto Valley Association: The Crypto Valley Association, founded in January 2017, of which I am a member, is an independent, government-supported association established to take full advantage of Switzerland’s strengths to build the world’s leading blockchain and cryptographic technologies ecosystem.
• Incorporation / capital increase with cryptocurrencies: Since 4 September 2017 incorporations of, and capital increases in, companies can be made with cryptocurrencies by way of contribution in kind. The very first incorporation of a Swiss limited company (LTD) with paid-in capital in form of Bitcoins was registered on 25 September 2017 in the Canton of Zug.
• Commercial Register Zug accepts Bitcoin and Ether as instruments of payment: From 2 November 2017, any fees due to the Commercial Register Zug can be settled with Bitcoin and Ether
• FINMA issues further guidelines with respect to ICOs in Switzerland: On 16 February 2018, the Swiss Financial Market Supervisory Authority (FINMA) issued further guidelines with respect to ICOs in Switzerland. In these guidelines, FINMA provided market participants with information on how it will deal with enquiries regarding the supervisory and regulatory framework for ICOs. The guidelines also specify the information required by FINMA to process enquiries from market participants, and also set out the principles on which FINMA will respond to them.
• Drakkensberg AG – registration of a company on blockchain in less than two hours: On 9 April 2018, Proxeus, IBM Switzerland and further partners, including our law firm, successfully registered a Swiss start-up entirely on Blockchain in a ‘fraction’ of the time traditionally required. The Drakkensberg Ltd case showed how the normal process with the entrepreneur, lawyer, bank, notary and commercial register can be turned into a digital workflow by using existing IT systems in the bank and commercial registry together with the Hyperledger Blockchain and a smart contract. The process will massively speed up company registration, facilitate the drafting of legal documents and consolidate the various parties in a most effective way.
The Swiss Blockchain Task Force recently published its White Paper, to be found on blockchaintaskforce.ch.
WHY INVEST IN THE CRYPTO VALLEY?
Located in Zug in the heart of Switzerland, Crypto Valley is uniquely positioned to make the most of the decentralised Swiss political system and its matchless business environment. Zug offers a robust platform for global growth due to its pro-business philosophy and the openness and easy accessibility of its local government. Zug’s low-tax, business-friendly environment and fantastic quality of life have attracted many of the world’s leading companies, creating an international, cosmopolitan culture, and easy access to powerful global networks.
WHY INVEST IN SWITZERLAND?
Switzerland is perfect for the blockchain community, offering many advantages, not limited to neutrality, decentralisation, stability, predictability, and responsiveness to its citizens. It also has direct democracy, a strong privacy culture, sound policies and economic strength with a strong currency.
Switzerland is ranked number one in the world for competitiveness and productivity, has world-leading infrastructure and a secure and predictable legal framework. The education system is also of a high quality, with many top-ranked educational institutions.
The country is home to a rapidly developing blockchain industry and to hundreds of multinational corporations, as well as a leading global financial hub. Switzerland’s business environment is matchless; and the Swiss financial market regulator, FINMA, encourages self-regulation rather than onerous top-down regulation. Finally, Switzerland is home to three of the world’s top ten cities for quality of life and is top-ranked for infrastructure, safety, healthcare, education, life expectancy and work/life balance.