Canton of Zug in Switzerland might become a “Cryptovalley”. A number of important cryptocurrency companies have already chosen to relocate there. And they had a good reason to do so, say local enthusiasts.

The infrastructure of the small Alpine region is excellent, locals are well-educated and stability is enviable – “a unique area to live and create,” according to the Cryptovalley Zug, a group of people promoting Zug as the future Silicon Valley of cryptocurrencies.

Cryptovalley Zug says it has gained support of local government, political bodies and financial service providers. It welcomes any cryptocurrency companies, big and small, in hope to foster collaboration between them and develop the ecosystem from what is already in place. The group also claims it has a “separate, specialized regulator for cryptocurrencies and blockchain-based business models.” Companies located in the valley may choose to become regulated, if they wish.

A number of bitcoin companies are already headquartered in Zug, including such giants as Xapo, Ethereum and ShapeShift. When explaining his decision to move headquarters to Switzerland, Wences Casares spoke about “the country’s regulatory stability, international neutrality and its deep-seated tradition in global finance.”

Switzerland also has a long-standing tradition of respect for privacy, which is an important issue for bitcoiners. The tax burden is comparably low in the country, and particularly in the Canton of Zug, where maximum individual income tax rate for super rich is only 22.86%. Finally, bitcoins are treated here as a foreign currency, which means they are VAT-exempt.

Alexey Tereshchenko