Home
News
- 2020 – a golden year for cryptocurrencies as the trading volume has risen enormously
- A new high of $1.23 billion was recorded by Switzerland’s primary stock exchange
- The business offers access to more than 100 different crypto products
Switzerland’s role
Statistically, the volume had surpassed the 2017 record of CHF 525 million by 112%. As Switzerland is most favorable for tax havens, the question arises if it’s becoming a crypto bank.
Let’s take an instance of Bitcoin Suisse, a Zug-based (largest town and capital of the Swiss Canton) financial services firm offering a wide array of cryptocurrency services, including trading, collateralized loans, staking especially to institutional clients, and HNI (High Net worth Individuals).
The firm will support the administration in receiving local taxes in Ethereum and Bitcoins in February 2021.
A financing round of CHF 45 million was also raised with a valuation of CHF 302.5 million.
The company’s previous bank guarantee rate was an AA- (minus), which is now around CHF 60 million—increasing customer demand on the platform fuels such decisions. Such tax benefits, coupled with large-scale transactions, make Switzerland a preferred destination for cryptocurrency trading.
Other Unique Benefits
Switzerland has some unique benefits concerning cryptocurrencies:
No laws and regulations are tailor-made towards cryptocurrencies or mining. Hence, mining is permitted, and activity is not subject to specific rules and regulations.
In general, capital gains on assets of individuals such as cryptocurrencies are exempted from income tax. However, if they are held as part of an individual’s business assets, capital gains of cryptocurrencies are subject to income tax.
The nation has a strong AML (Anti-Money Laundering) act whereby both issuance and trading of cryptocurrencies are subject to anti-money laundering requirements.
The Swiss Government’s overall attitude is positive and co-operative, which makes it easier to execute various crypto transactions and offer a variety of products. There is a clear distinction between actual trades and speculations. Accordingly, the framework has been established, thereby reducing the scope of any possible loopholes.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
