Almost everybody in the world knows the Silicon Valley – a place where huge tech companies’ headquarters are situated. Now we want to talk about another Valley that will be as famous as Silicon Valley in the next 5 years – about Crypto Valley.
What is Crypto Valley?
Crypto Valley is a company that the main purpose of which is to build the world's best ecosystem for blockade and other related technologies. You can visit their site https://cryptovalley.swiss.
There are not many jurisdictions where cryptocurrencies are legalized and Switzerland is one of the most demanded jurisdictions as well as Estonia. Now we are in process of fund registration, we will write more about it in the near future. So if you don`t want to miss it please subscribe.
So let`s return to a Switzerland. In the first half of 2017 the aggregate amount of all investments in cryptocurrency market collected by Swiss companies exceeded $ 370 million. Such popularity is promoted by progressive legislation, relatively low tax rates, developed banking infrastructure, high level of confidentiality and, finally, the status of the pioneer country in a good attitude to crypto business.
The Crypto Valley is situated in Zug. Hundreds of fintech and blockchain startups have registered into in Crypto Valley including companies such as Ethereum, ShapeShift, Xapo, Status, Cosmos Network and others. Tezos Foundation which collected a record $ 232 million on ICO is also located here. Despite all the mentioned above the process of registration of a company in Zug is time-consuming and costly.
BTC and cryptocurrencies regulation
Bitcoin and other crypto-currencies are treated in Switzerland as assets. At the moment, the Swiss Federal Council is taking steps to develop the legal status of crypto-currencies and regulation. The Swiss cantons also actively integrate cryptocurrencies into people's daily lives: it is possible to pay utility and other services with BTC.
How much does it cost to open a company?
You don`t need any license if you want to make any deals with cryptocurrencies, legal entities and individuals need to comply with the requirements of the Swiss Laws on Money Laundering, including the KYC (Know Your Client).
Switzerland has strict requirements for the company's share capital. For example, a limited liability company must have 20 thousand Swiss francs (about $ 21,4 thousand) as a share capital, and such the capital must be fully paid at the time of registration.
It is also necessary to have a local office. In addition, one of the members of the board of directors must be a resident or citizen of Switzerland. The maintenance of the company will cost approximately 10-18 thousand ($ 10,7- $ 19,3 thousand) of Swiss francs per year: cost of services of the director-resident / citizen of Switzerland, office rent in the canton of registration, filling of accounting and tax reporting etc.
Summery
Swiss Zug is a premium jurisdiction for a token. This is due to progressive legislation and good conditions for doing business in Zug.
Despite the fact that taxes in Switzerland are paid at the federal, cantonal and local levels, the tax burden is much lower than in many other European countries.
The attractiveness of the infrastructure and all the necessary conditions for the further conduct of the crypto-currency business, Switzerland's popularity as jurisdiction for ICO will decrease. Most of these startups spend most of the budget on business organization, which cannot be called rational. That's why the company's registration in Switzerland will make sense for large token sellers that intend to collect from 20 million US dollars, and the popularity of this jurisdiction for smaller ones will decrease.
