Switzerland made significant modifications to a number of its legislative acts, which in the future can create a solid basis for the crypto-currency trading market grounded on Blockchain technologies. Zug has so-called “Crypto Valley” – independent, state-supported union set to create the world’s leading Swiss blockchain and crypto-ecosystem. Obtaining cryptocurrency exchange license in Switzerland is possibility to expand your own commercial horizons and connect your business with a reliable and promising space.

Switzerland is cryptocurrency-friendly state. Here, crypto-currencies are in favor, and it has taken an advanced stance towards crypto-currency regulations. Although Switzerland isn’t cheapest state to set up a new business, it has many significant advantages that make it more attractive than other countries for cross-border entrepreneurs.

Benefits of jurisdiction for entrepreneurs interested in launching a cryptostartup

Country has leadership pays attention to reforming legislative basis, considering situation with development of cryptobusiness and blockchain. Back in 2014, digital currencies received legal status. Crypto-currencies have been recognized as a virtual expression of value that can be bought and sold through Internet channels. This served as the basis for development of approval frameworks in crypto-exchange sphere.

Registering Swiss company in field of crypto-currencies can offer its owners many advantages, including:

  • stable economy and political environment;
  • favorable business environment;
  • Swiss government is actively supporting crypto-currency industry and has released ICO guidelines and FINMA documents;
  • local Crypto Valley has popular and ultra modern blockchain platforms that create a favorable environment for companies;
  • low taxes in several cantons, including Zug, center of the crypto-currency industry.
  • possibility of tax exemption on dividends;
  • highly qualified personnel reserve for this industry.

Crypto-assets regulation in Switzerland

The state hasn’t yet set a specific law regulating crypto-currencies, tokens and similar products on blockchain. Nevertheless, the country is successfully implementing the current legislative basis for financial sphere in relation to various crypto projects. Tokens are divided into:

  • assets ones are an analogue of security tokens. They are assets that guarantee shares of income of issuing firm. Tokens enabling the trading of physical means on blockchain are there too. Moreover, when classifying tokens, specific legal positions having relation the token are always taken into account;
  • utility tokens are product tokens giving rights to receive a product based on structuring of token issuer. Due to the lack of interaction with capital market;
  • payment tokens – fiat (Bitcoin, Ethereum, etc.).

Information and Requirements for Applying for a Swiss Crypto-currency License

The structure of the company

  • At least one shareholder (individual or legal entity, no restrictions on citizenship or place of residence)
  • At least one director (foreign residents are allowed)

Taxation

  • In general, UK companies are subject to income tax at the rate of 19%.
  • A special rate of 20% is available for mutual funds and public investment structures.
  • The standard VAT rate is 20 percent, the reduced rate is 5 percent, and the rate is 0 percent.

Accounting Requirements

  • Reporting and annual reports are required.
  • Accounting records must be kept in English.
  • VAT refund is submitted once every 3 months.

Secretary – Not required

Legal address – Not required

Registered address – required

Registered Agent – Not required

It’s become possible for crypto-currency exchanges and ICOs to pool capital. Functional responsibilities of the FINMA regulator have also increased. From now on, he controls the activities of organizations whose activities are related to non-fiat funds. It is the FINMA regulator that takes preventive measures against possible risks and fraud.