The national ecosystem of Switzerland’s Crypto Valley is actively connected to global hubs for blockchain innovation in London,
A “major reset” of its policies has been undertaken by Zug, Switzerland’s Crypto Valley, in response to the numerous unfavourable incidents that have impacted the cryptocurrency industry. The effects of the FTX crypto-bankruptcy exchange’s are only one of several.
Switzerland: The Crypto Valley updates its policies following catastrophic business-related incidents
According to reports, Zug’s iconic Crypto Valley in Switzerland has chosen to undertake a “significant reset” of its laws.
Unlucky occurrences in the cryptocurrency business that took place in 2022 have been identified as the primary cause.
Moreover, according to reports, Dirk Klee, the CEO of Bitcoin Suisse, identified the occasions that in some way had a detrimental impact on the cryptocurrency and blockchain industries. He mentioned the collapse of FTX in November 2022, followed by the insolvency issues of Genesis, another industry titan.
According to reports, Klee attributed the decline in investor confidence in the bitcoin sector to these incidents.
In addition, Klee recalled the failure of Terra/Luna, the stablecoin tied to the US dollar, which happened in May, as well as the subsequent issues with two other titans, including Celsius and a Singapore-based cryptocurrency hedge firm named Three Arrows Capital.
Klee and Crypto Valley: “Crypto failures do not result from technological issues”
Klee continues his study by pointing out that these occurrences have shown the flaws in the majority of the organisations involved in the cryptocurrency industry.
According to Klee, the issue specifically stems from businesses that haven’t yet followed with regulatory procedures or from bad management decisions made by centralised financial institutions.
In essence, Klee is certain that any breakdown that took place in 2022 was not caused by technology issues.
The series of events, according to Mathias Ruch, founder and CEO of CV VC/CV Labs, delayed the industry by two years.
As a result, Crypto Valley as a whole is changing its posture. It should come as no surprise that Switzerland has already attracted more than 1,000 bitcoin and blockchain firms.
Also, these businesses are primarily motivated by the welcoming political environment, supportive legal system, and advantageous investment climate in the region, which is underlined by the favourable tax rates.
The region’s strong support for cryptocurrencies—which extends to allowing tax payments in Bitcoin or Ethereum—is a good example of these qualities.
Regulation of Bitcoin and cryptocurrencies by the European Union and Bitcoin Suisse
Luzius Meisser, president of Bitcoin Suisse, assessed the state of European cryptocurrency legislation at the start of the year.
Meisser claims that Europe will work to enact new rules and regulations that will maintain the banking and cryptocurrency industries as distinct as possible without attempting to stifle either one.
As if to create a legal wall of isolation, elevating the crypto elite without outright outlawing it.
In any case, the Crypto Valley will see to it that it engages with European rules and the cryptocurrency sector that has been harmed by its tragic occurrences from the previous year.
With an estimated worth of 325 million francs by the end of 2021, Niklas Nikolajsen, the founder Danish businessman of Bitcoin Suisse, has been included on the list of the 300 richest Swiss.