- 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
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 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.
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