In February 2021, Switzerland passed the “Blockchain Law,” which paved the way for a fully regulated cryptocurrency and digital securities industry. Despite the alpine nation’s famous history with banking and financial services holding old money and guarding client confidentiality, Switzerland is also well-known for supporting and encouraging innovation.
With the Ethereum Foundation having a physical presence in Zug, and Lugano effectively being on a quest to make crypto mainstream through a partnership with Tether, I want to take a closer look at what makes Switzerland an attractive destination for those working in crypto.
I spoke to Yang Lan of Fiat24, Nicola Plain of Aktionariat, and Gabriel Jaccard of Abritri – all CEO’s of blockchain and crypto-based companies in Zurich and Geneva, to get their unique experiences and perspectives on the Swiss crypto scene.
Gabriel Jaccard CEO of Arbitri
Innovation and Freedom to Experiment
Just taking a look at the Top 100 Swiss Startup List reveals an incredible diversity of young innovators across sectors such as biotech, food, robotics and fintech. Due to a combination of the Swiss federal technology institute ETH Zurich’s extremely high performance in world rankings, as well as the continued investment by multinationals, Switzerland truly embraces innovation and has produced several high profile projects.
Nicola Plain, CEO of Aktionariat says “thanks to the solid legal foundation, the highly educated professionals and the “startup spirit”, Switzerland is the perfect place to start leveraging the endless possibilities blockchain and especially ethereum has to offer.”
Nicolas Plain, CEO of Aktionariat
“The Swiss Authorities adapted quickly to the new business models using blockchain. The current Swiss regulatory environment enables in theory pretty much any type of ideas to be implemented. By providing a high level of legal certainty and an end-to-end comprehensive approach, Switzerland naturally became a prized destination for any blockchain entrepreneurs willing to build on solid ground,” says Gabriel Jaccard, CEO of Arbitri.
“We purposefully selected Switzerland as the place where to establish Fiat24 due to many reasons, and certainly one of them is the encouragement to innovate and the openness to create entirely new business models with the latest technology. We have found that there are truly some very bright young minds here and a strong sense of community through the various associations, which bring members together in a positive way,” says Yang Lan, co-founder of Fiat24.
Yang Lan, Co-founder of Fiat24
Digital transformations
The Swiss “brand” and global image is associated with security and political stability, both essential when it comes to the digital asset and transformation space. It also has a reputation for being a world-class, neutral hub, which is attractive for crypto companies to open shop here.
Plain agrees, saying “not only the builders but also the end-users are eager to take the new, exciting, and potentially value generating opportunities that open up thanks to the emerging blockchain technology. I personally think that this match of capable builders and curious users is something unique to Switzerland.”
“There are great discrepancies in the world regarding the pace of digital transformation. In Switzerland thanks to its unique ecosystem, a wide range of services in the Crypto industries has quickly spawned. Amongst those services we can notably mention the possibility of opening a bank account or even a company using only crypto, which are not that common in the world today,” says Jaccard.
FINMA is crypto-friendly
It may come as a surprise to some, but FINMA, the Swiss Financial Market Supervisory Authority shows an openness perhaps unrivaled by other governmental bodies around the world. Having introduced their Fintech License in 2018 with the sole purpose of “boost innovative financial companies,” they remain approachable and friendly, willing to have conversations with new founders.
Switzerland has worked like a decentralized entity since the beginning of its history. It is hence only natural for the Swiss Authorities to embrace innovative business models as a norm. By providing a no-action letter, the FINMA gives a clear vision on how a project will be regulated. The Swiss Authorities know what is happening in the Crypto industry, which may be seen as a perk or as an inconvenience depending on the project leader’s mindset.
As Fiat24 works closely with FINMA, Yang Lan says “our experience with the Swiss Financial regulator has been fruitful, empowering and we have truly been able to grow and develop our vision in large part thanks to their continued support. We appreciate their mindset, especially when we compare it to other countries around the world.”
Making their mark
Crypto Valley has been witness to the evolution and success of many a crypto and blockchain company, and here, I would like to highlight just 3 of the many who are constantly striving to build a more efficient digital world.
Arbitri – a one-stop shop for retails and businesses providing tailor-made services for all blockchain related projects, the company is driven by the efforts of Gabriel Jaccard, a legal expert who lends his deep insights in events worldwide.
Aktionariat – provides a platform for issuing, managing and trading tokenized shares. Blockchain technology enables a direct market between the company and its investors, and also serves as a distributed ledger.
Fiat24 – offers a Web3-ready banking ecosystem that is FINMA regulated, and the first core banking system built entirely on blockchain and powered by smart contracts. They offer clients multi-currency cash accounts that can be topped-up by peers, through a bank transfer, and a crypto-to-fiat top-up, with a card to be issued by the end of 2022.
