X8 AG

Is Crypto’s Crush On Switzerland Headed Towards A Lasting Affair?

Recently, it was reported on Swiss news media that Xapo, a Bitcoin wallet, has decided to leave its Hong Kong office to set up shop in Switzerland.

Given that Switzerland has seen quite a wave of crypto companies migrating into the country, it leads us to wonder whether the crypto world’s great crush on the country is turning into a more permanent association.

What Xapo’s President Ted Rogers had to say at the World Web Forum in Zurich gives credence to that idea. He said that the company were moving away from Hong Kong in hopes of finding a more conducive environment for cryptocurrencies.

He commented that Hong Kong had stopped being the “holy grail of crypto regulations” it used to be before. Therefore, in that context, Xapo’s choice to move to Switzerland is quite telling.

He said that unlike Hong Kong, where he deemed cryptocurrency regulations to have “become more opaque”, Switzerland was the “right place” for crypto firms today. Switzerland, which has been rolling out the red carpet for crypto and blockchain projects, are led by authorities and regulators that are, in the words of Rogers:

“smart, interested and sophisticated in dealing with the financial markets.”

Xapo joins a long list of companies that have decided to move to Switzerland in the hope of having a better regulatory structure. This year itself, on first of January, 2019, Lamassu, a Bitcoin ATM supplier, also made the move to greener pastures in Switzerland owing to difficult regulatory conditions.

Switzerland has long had a flourishing dalliance with the world of both cryptocurrencies and blockchain technology. It has even put in a great deal of energy and effort in building up its town Zug as a dedicated hub for both startups and established firms that deal with crypto. Now, the lakeside town is touted as the world’s famous “Crypto Valley”.

In the Swiss attempt to woo crypto firms, Zug has been at the very forefront, with new firms setting up shop quite frequency at this location. Major firms that have started operating here for a while now include companies like BitFinex, the Ethereum Foundation, Tezos, Cardano, ShapeShift and more.

Clearly, a lasting bond between the crypto sector and Switzerland is developing fast. As Dr. Martin Eckert, a Swiss legal expert who deals with tech firms had commented in 2018:

“Swiss regulators are among the few that have a deep understanding of the technology and how it works.”