Switzerland beckons crypto enthusiasts with its accommodative laws
- Switzerland remains one of the most crypto-friendly countries with its progressive laws, and regulations.
- Swiss government-owned PostFinance bank partnered with Sygnum to provide customers with crypto services.
Switzerland has long been a global economic hub and today the country has emerged as one of the most attractive locations for crypto enthusiasts. The land of Toblerone and Lindt chocolates has more to offer crypto companies than most other places.
The Swiss government has a crypto-friendly legal framework in place that helps to lure in firms. Thanks to progressive laws, Switzerland is home to more than 900 cryptocurrency and blockchain firms.
A crypto haven: The need of the hour
The recent turmoil in the U.S. crypto-banking industry has left companies searching high and low for new partner banks. U.S. banks including Silvergate Capital, Silicon Valley Bank, and Signature Bank have shut shops recently, following the strict regulatory intervention.
In contrast, more and more traditional banks in Switzerland are now starting to offer customers the option to buy and sell crypto.
Switzerland’s fifth-largest bank PostFinance has partnered with digital assets bank Sygnum to provide customers with crypto services.
📰📣 NEWS: @PostFinance partners with Sygnum, the world’s first digital asset bank, to offer its customers regulated digital asset banking services via Sygnum's B2B banking platform. Read the announcement here 👇 https://t.co/zuWRP3lXIS
— Sygnum Bank (@sygnumofficial) April 5, 2023
PostFinance, which is fully owned by the Swiss government, said:
“PostFinance’s customers will be able to buy, store and sell leading cryptocurrencies such as Bitcoin and Ethereum.”
Switzerland vs. U.S.
Another question that plagues the U.S. crypto scenario is whether cryptocurrencies are assets or securities. Regulators and investors are confounded by the lack of clarity on the topic. However, the Swiss Federal Tax Administration has subjected cryptocurrencies to wealth, income, and capital gains taxes fairly and transparently.
Hence, crypto is considered an asset in the European country and there is no question on whether they are securities, unlike in the U.S. It treats matters involving the ownership and transfer of virtual currencies in line with other asset classes like property or gold.
Certain cities in Switzerland have also legalized the use of cryptocurrencies. The city of Zug started accepting Bitcoin and Ether as tax payments in 2021. Zug is also known as the “crypto valley” as over the years several blockchain and cryptocurrency companies have settled in Zug owing to its low taxes.
Another city, Lugano went one step ahead to promote crypto. It announced plans to make Bitcoin, Tether, and its token legal tender for transactions.
However, Switzerland is not the only nation adopting crypto payment methods and welcoming aficionados and their businesses. Countries taking similar action include Dubai, Malta, Singapore, Canada, Bermuda, and Luxembourg.
Switzerland has done way more than any other European country to embrace the crypto sector. But it needs to be seen whether the Alps country can maintain its status as a crypto haven as competition rises.