Switzerland May Become More Crypto Friendly With Ueli Maurer as President

[mich]

https://cryptomenow.com/switzerland-may-become-more-crypto-friendly-with-ueli-maurer-as-president/

With overwhelming support from the Swiss parliament, the country’s former finance minister Ulrich “Ueli” Maurer has started to serve as the President of the Swiss Confederation since January 1, which may allow the country to become friendlier toward crypto.

In the past several years, under the leadership of Maurer, Switzerland adopted practical crypto and fintech-related regulatory frameworks to facilitate the growth of emerging technologies and startups working to increase the awareness of blockchain technology.

How Maurer’s Presidency May Affect Local Crypto Sector

During his term as a finance minister of the Swiss Confederation, the government integrated several key policies that enabled startups in the cryptocurrency and blockchain sector to operate freely without regulatory hurdles.

In August 2018, Crypto Finance AG board member Marc Bernegger told Bitcoin.com in an interview that while the country has hundreds of cryptocurrency companies in Zug, only a small portion of the companies had bank accounts with local banks.

The entrepreneur said:

    I understood from day one the impact that the technology was going to have. Back in the old days, hardly anybody in the traditional financial services industry was even hearing about Bitcoin. Nowadays, when it comes to cryptocurrencies, there is an understanding of financial services that reminds [me of] the old banking privacy. It isn’t about replicating that again, but I think Switzerland has a strong reputation and knowledge about protecting assets.

Recognizing that the refusal of banks to provide stable financial services to cryptocurrency startups may negatively affect the growth of the country’s local cryptocurrency sector, then finance minister Maurer established a meeting with Finma and the Swiss National Bank to find ways to provide cryptocurrency startups with banking services.

Following the meeting, many private banks including Maerki Baumann started to work with cryptocurrency-related startups given that companies are in compliance with existing financial regulations.

The forward-thinking approach in fintech and cryptocurrency regulation by Maurer eventually led Zug, the fintech capital of the region, to become the fastest growing city in technology.

An annual report released by Atomico, a London-based investment firm, revealed that in many areas including conferences, Zug has shown the highest year-on-year growth over any other European city.

The rapid growth of the fintech, finance, and cryptocurrency industries of Switzerland also allowed the country to compete with some of the largest economies in Europe in the volume of deals and investments in 2018.

“Italy, Norway and Switzerland have seen the significant expansion of deal volume in 2018, as investment activity in these relatively less mature countries continues to grow. The overall top 5 countries in Europe by total number of deals in 2018 remains the same as in 2017 with the UK, followed by France, Germany, Sweden and the Netherlands,” an Atomico report read.

Switzerland is in Tight Competition

Five months ago, Maurer engaged in a discussion with local financial authorities and financial institutions because he acknowledged the emergence of competitors in the fintech and cryptocurrency space, which could overshadow the efforts of Switzerland if companies move out of the region.

Since then, the competition in the global cryptocurrency sector has tightened, leaving cryptocurrency startups alternative choices outside of Switzerland.

Countries in the likes of Malta, Singapore, Hong Kong, South Korea, and Japan have adopted cryptocurrency-friendly policies with adequate Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, in a similar manner as Switzerland.

In the months to come, as seen in the decision of the Swiss Stock Exchange, the country’s largest stock market, to list a cryptocurrency exchange-traded product (ETP), the country may continue to see increasing cryptocurrency and blockchain initiatives that could contribute to the improving liquidity and institutionalization of the asset class.

[efxtrader]

As financial center in the world, switzerland will leads others country to regulate cryptocurrency. Peoples transaction using paper money is low and i think switzerland will be center of cryptomarket if the government regulating market

[elda34b]

As financial center in the world, switzerland will leads others country to regulate cryptocurrency.

They won't lead other countries. Several countries are more crypto friendly just like Switzerland. For example, Liechtenstein, Estonia, and so on. Several projects did their ICO on those countries last year. Seems like EU countries are leading all the way though.

[pooya87]

wasn't Switzerland already pretty bitcoin friendly so far? i don't remember ever reading anything negative about them, in fact i have only heard positive news and they were one of the first countries to have a lot of bitcoin ATM machines not to mention that you can buy bitcoin from any train station there (based on a news i read a while ago).

[mk4]

Good news, but wait til Maurer creates his own cryptocurrency à la Nicolas Maduro's Venezuelan Petro. LOL

[dothebeats]

Switzerland is always the first in fintech innovations and advancements, so I don't think it's news if they'd be having a new president that's interested in cryptocurrencies and such. They're already a leading bitcoin hub before everyone else followed suit, and they're continuing to be one albeit the negative remarks of other countries against bitcoin so I guess it's not a big deal if a bitcoin-friendly president sits on the executive chair for years.

[KingScorpio]

swiss are always cryptofriendly they hope to find hard working idiots in germany to gamble their savings, similar like current cryptomarket does.

[tytanhamon04]

As far as I know Switzerland has always been open to cryptocurrency and one of the first began to use the blockchain in the banking system as I heard that Swiss banks have invested in bitcoin but this is not accurate.

[Marbelli]

It would be great if a financial giant like Switzerland started to have a positive attitude in cryptocurrency

[jseverson]

Good news, but wait til Maurer creates his own cryptocurrency à la Nicolas Maduro's Venezuelan Petro. LOL

I know you're probably joking, but have they shown any inclinations towards this? Or is there any reason they may want to? I mean, people who have been involved in crypto should know by now that creating a "state crypto" is mostly pointless. Maduro obviously only wanted to raise funds and work around sanctions.

[tomahawk9]

I know you're probably joking, but have they shown any inclinations towards this? Or is there any reason they may want to?

It wouldn't be surprising if they actually create their own cryptocurrency, some bankers over there have shown interest in creating a "cryptocurrency bank"^[1], so you never know what they might be up to in the future. As for a reason...probably control? Though I find it hard to believe that Switzerland would want to be as oppresive as let's say Venezuela where Maduro created a cryptocurrency to not only work around sanctions but to also impose more control over the people (last I heard, the pension money for the elderly people was paid in Petro without them knowing even though you can't use this scamcoin to buy stuff in that country)

1. https://cointelegraph.com/news/swiss-startup-raises-103-million-to-launch-cryptocurrency-bank

[rdbase]

They might be crypto friendly in the future.
But right now Malta is being known as the crypto island from what was said in a recent 60 minutes mini documentary which aired before the new year.
They have alot of businesses moving in that want to develop their companies to use blockchain technology.
And the crypto casinos have had a high presence there for several years now.

[muslol67]

I believe that cryptocurrencies will one day be used all over the world. Maybe travelers will use similar currencies all over the world. However, when this happens, Switzerland will certainly be one of the first. Switzerland is a country known as the world's coffers. And I think there are people who are very good at financial forward opinion. This person can be one of them.

[stompix]

As financial center in the world, switzerland will leads others country to regulate cryptocurrency.

They won't lead other countries. Several countries are more crypto friendly just like Switzerland. For example, Liechtenstein, Estonia, and so on. Several projects did their ICO on those countries last year. Seems like EU countries are leading all the way though.

People are choosing Estonia for ICOs for one simple thing, you can start a company online in a matter of minutes with little paperwork, with basically no scanning from the authorities and as cheap as possible.
You can run a company there even without ever setting foot in that country, you can do everything online from starting the company, getting an office and even hire staff that has no clue what you really do.

This is why you have lots of ICOs based there, that's why you have lots of ICOs based in Estonia disappear after the token sale with no trace whatsoever.

I know you're probably joking, but have they shown any inclinations towards this? Or is there any reason they may want to?

It wouldn't be surprising if they actually create their own cryptocurrency, some bankers over there have shown interest in creating a "cryptocurrency bank", so you never know what they might be up to in the future. As for a reason...probably control? Though I find it hard to believe that Switzerland would want to be as oppresive as let's say Venezuela

Unlike a lot of other countries, in Switzerland, the introduction of currency would mean a referendum in order to modify the constitution as not only must the paragraphs about the roles of the Confederation and the National bank but also all the paragraphs where the Swiss franc is mentioned as the only currency.
Besides, they are going to need a mandatory referendum for that that can be passed only if a double majority is achieved.

So unless the people really want this, it doesn't stand a chance of happening.
And some referendum had interesting results there, like rejecting an increase in the minimum wage or completely rejecting the basic income plan (free money for everyone).

[Josmorio]

https://cryptomenow.com/switzerland-may-become-more-crypto-friendly-with-ueli-maurer-as-president/

With overwhelming support from the Swiss parliament, the country’s former finance minister Ulrich “Ueli” Maurer has started to serve as the President of the Swiss Confederation since January 1, which may allow the country to become friendlier toward crypto.

In the past several years, under the leadership of Maurer, Switzerland adopted practical crypto and fintech-related regulatory frameworks to facilitate the growth of emerging technologies and startups working to increase the awareness of blockchain technology.

How Maurer’s Presidency May Affect Local Crypto Sector

During his term as a finance minister of the Swiss Confederation, the government integrated several key policies that enabled startups in the cryptocurrency and blockchain sector to operate freely without regulatory hurdles.

In August 2018, Crypto Finance AG board member Marc Bernegger told Bitcoin.com in an interview that while the country has hundreds of cryptocurrency companies in Zug, only a small portion of the companies had bank accounts with local banks.

The entrepreneur said:

    I understood from day one the impact that the technology was going to have. Back in the old days, hardly anybody in the traditional financial services industry was even hearing about Bitcoin. Nowadays, when it comes to cryptocurrencies, there is an understanding of financial services that reminds [me of] the old banking privacy. It isn’t about replicating that again, but I think Switzerland has a strong reputation and knowledge about protecting assets.

Recognizing that the refusal of banks to provide stable financial services to cryptocurrency startups may negatively affect the growth of the country’s local cryptocurrency sector, then finance minister Maurer established a meeting with Finma and the Swiss National Bank to find ways to provide cryptocurrency startups with banking services.

Following the meeting, many private banks including Maerki Baumann started to work with cryptocurrency-related startups given that companies are in compliance with existing financial regulations.

The forward-thinking approach in fintech and cryptocurrency regulation by Maurer eventually led Zug, the fintech capital of the region, to become the fastest growing city in technology.

An annual report released by Atomico, a London-based investment firm, revealed that in many areas including conferences, Zug has shown the highest year-on-year growth over any other European city.

The rapid growth of the fintech, finance, and cryptocurrency industries of Switzerland also allowed the country to compete with some of the largest economies in Europe in the volume of deals and investments in 2018.

“Italy, Norway and Switzerland have seen the significant expansion of deal volume in 2018, as investment activity in these relatively less mature countries continues to grow. The overall top 5 countries in Europe by total number of deals in 2018 remains the same as in 2017 with the UK, followed by France, Germany, Sweden and the Netherlands,” an Atomico report read.

Switzerland is in Tight Competition

Five months ago, Maurer engaged in a discussion with local financial authorities and financial institutions because he acknowledged the emergence of competitors in the fintech and cryptocurrency space, which could overshadow the efforts of Switzerland if companies move out of the region.

Since then, the competition in the global cryptocurrency sector has tightened, leaving cryptocurrency startups alternative choices outside of Switzerland.

Countries in the likes of Malta, Singapore, Hong Kong, South Korea, and Japan have adopted cryptocurrency-friendly policies with adequate Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, in a similar manner as Switzerland.

In the months to come, as seen in the decision of the Swiss Stock Exchange, the country’s largest stock market, to list a cryptocurrency exchange-traded product (ETP), the country may continue to see increasing cryptocurrency and blockchain initiatives that could contribute to the improving liquidity and institutionalization of the asset class.

This is one good reason why I love Switzerland, they are open minded and welcome to emerging Tech, Blockchain most especially.
I think Mr Maurer is paving the way for Crypto which I appreciate greatly

[avikz]

They might be crypto friendly in the future.
But right now Malta is being known as the crypto island from what was said in a recent 60 minutes mini documentary which aired before the new year.
They have alot of businesses moving in that want to develop their companies to use blockchain technology.
And the crypto casinos have had a high presence there for several years now.

Correct! Small countries like Malta don't have any option to establish heavy engineering production industries. So they had to take some drastically different decision to incease the income of the country as well as to generate employment. Tech companies usually don't require lot of spaces and also suitable for mass employment. Malta just jumped in to the opportunity that blockchain industry can provide and they are doing it pretty successfully.

On the other hand, Switzerland is not a very small country but known for its superior data protection and tax friendly policies. It was always the most favourite destination of black money from the rest of the world. No wonder they are opening up their arms for cryptos as well. Hope everything will go well and their stance would not change even if the government is changed in future.

Surely hoping to see some high quality swiss made blockchain initiatives in 2019 and many years to come!

[Josmorio]

Good news, but wait til Maurer creates his own cryptocurrency à la Nicolas Maduro's Venezuelan Petro. LOL

You made a strong point there!
I guess no one should be surprised whenever he decides to take a step in that direction like the Venezuelan presido

[Josmorio]

They might be crypto friendly in the future.
But right now Malta is being known as the crypto island from what was said in a recent 60 minutes mini documentary which aired before the new year.
They have alot of businesses moving in that want to develop their companies to use blockchain technology.
And the crypto casinos have had a high presence there for several years now.

Correct! Small countries like Malta don't have any option to establish heavy engineering production industries. So they had to take some drastically different decision to incease the income of the country as well as to generate employment. Tech companies usually don't require lot of spaces and also suitable for mass employment. Malta just jumped in to the opportunity that blockchain industry can provide and they are doing it pretty successfully.

On the other hand, Switzerland is not a very small country but known for its superior data protection and tax friendly policies. It was always the most favourite destination of black money from the rest of the world. No wonder they are opening up their arms for cryptos as well. Hope everything will go well and their stance would not change even if the government is changed in future.

Surely hoping to see some high quality swiss made blockchain initiatives in 2019 and many years to come!

The reference about them being the favourite country for black money is right!
Many countries  shyed away from involving in such business deal and Switzerland used the opportunity to develop it's country with that influx of black cash so to say.
Right now the rest of the world is playing strict,  while they are playing friendly.
I think they are at it again with crypto lol!

[mich]

https://www.forbes.com/sites/jeffkauflin/2019/01/10/crypto-startups-are-fleeing-the-usthis-bill-is-trying-to-stop-them/#1529ea8d2267

Crypto Startups Are Fleeing The U.S.—This Bill Is Trying To Stop Them

Intreesting point I took from article:

"In February 2018, Switzerland declared that some ICOs are not securities, drawing applause from industry veterans. Today about 420 crypto and blockchain startups are domiciled there, according to research by PwC and Swiss blockchain investment firm CV VC. Although the U.S. population is 40 times larger, it has just 2,100 such startups, AngelList reports.

In other words, for every 100,000 residents of each country, Switzerland has five crypto startups, while the U.S. has only one.

[SIDDHI777]

Great news and Switzerland as a country always had an open mind regarding crypto from the beginning and when we look into the overall progress of digital currencies we can definitely agree that they will definitely go mainstream as valuable currencies because there adoption rate is remarkable when comparing with there first few years because during that time they were used only as an investing assets in various exchanges but now many businesses beginning to connect crypto with there core transactions so the future ahead will be much better for crypto and Switzerland will give a great push for a solid start