Switzerland plans to become a promise land for cryptocurrency once again

21 Jul, 2018
by Matthew Kim
News
Switzerland plans to become a promise land for cryptocurrency once again

Back in February, Switzerland established a regulatory guideline for ICOs in an attempt to reel in ICO frenzy that was taking over the country. Feeling the hands of government regulations creeping up to their necks, the ICO projects migrated for freer lands. Now, Switzerland is trying to win them back.

Switzerland was once seen as one of the promise lands in the cryptocurrency industry, and many cryptocurrency projects flocked to the country to start their projects. However, following the introduction of regulations in February, Switzerland quickly dropped from 2nd to 6th in PwC’s ranking of countries in order of total funds raised by ICOs.

The most critical problem created by the regulations was the lack of access cryptocurrency projects had to banking systems. Having been shut off from the financial ecosystem, the projects were stripped of most functions and forced to leave.

Switzerland is finally noticing that they are losing their previously strong grip on a growing industry. The businesses are moving to different nations, and the jobs that they would have created are finding a place elsewhere. According to Reuters, Thomas Moser, an alternate member of the governing board at the Swiss National Bank, Switzerland “would not want to close the door on the opportunities that [cryptocurrencies] might bring”.

In an attempt to win back the fleeting projects, Switzerland is planning to revise their regulations to make them more reasonable. In May, the central bank, finance ministry, and Swiss Bankers Association (SBA) met to find a balance between stringency to prevent crime and freedom for operation. The nation intends to have a new FINMA-approved guideline of regulations for cryptocurrencies by the end of the year.

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