Switzerland Becomes Crypto Powerhouse

The country is home to major blockchain companies including the Ethereum Foundation, Polkadot, Cardano and Libra.

Switzerland, all too often regarded as the epicenter of wealth management and watch design, has emerged as a blockchain and crypto assets powerhouse, according to a recent report. The findings by the EU Blockchain Observatory and Forum, an initiative of the European Commission, said Switzerland is one of the most advanced nations, not just in Europe, but globally.

With mature venture capital and startup support ecosystems, the tiny Swiss canton of Zug is more widely known as “Crypto Valley,” while the country is home to major blockchain companies including the Ethereum Foundation, Polkadot, Cardano and Libra. The burgeoning sector reportedly numbers 800 dedicated blockchain providers and eight unicorns—a term used by investors to describe a privately held startup that achieves a valuation of more than $1 billion.

Part of the country’s allure is attributable to an early move by Swiss authorities to clarify the legal status of crypto assets following a 2018 report by the federal government analyzing blockchain’s legal framework, the report added. Later this year the distributed ledger technology bill comes into force—part of a number of initiatives by the Swiss Financial Market Supervisory Authority­—which is expected to bolster the country’s lead in the sector.

But Switzerland is not alone in the European cryptoverse. The report also cites Cyprus, Estonia and Malta as having mature ecosystems and regulatory structures that provide a symbiotic operating environment similar to Switzerland.