Ethereum

Token

Cryptocurrency

Narrative

<ul class="list-ic vertical"> 
 <li> 1 <a>Switzerland has been among the world’s most popular financial centers globally.</a> </li> 
 <li> 2 <a>Liechtenstein has passed the Token and Trustworthy Technology Service Providers Act which took effect in January, 2020.</a> </li> 
</ul> 
Cryptocurrency adoption was adversely affected due to the Luna and FTX disasters over the past couple of years, Switzerland and Liechtenstein have proven to be fertile grounds for crypto adoption. A Report by Crypto Valley (CV VC), a Swiss venture capital firm, highlights that valuation of crypto projects has increased by 106 percent to $382.93 Billion in 2023. 
<h2 class="wp-block-heading" id="strong-a-significant-shift-in-distribution-strong">A Significant Shift in Distribution</h2> 
Ethereum (ETH), the second largest crypto project in the world, is currently the highest valued project in Crypto Valley, encompassing both Switzerland and Liechtenstein. The report dubbed The CV VC Top 50 also indicates that Crypto Valley now hosts a total of 1,290 crypto companies. 
Zug is currently the central hub having 512 companies in the region followed by Zurich with 289 companies and Geneva with 115. Other regions in the list include Vaud, Schwyz, Lucerne, and more. All in all, Switzerland is hosting 1,224 of them while Liechtenstein is hosting 66. 
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 <img loading="lazy" decoding="async" width="1024" height="647" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/01/image-380-1024x647.png" alt="" class="wp-image-188983" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/01/image-380-1024x647.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/01/image-380-300x190.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/01/image-380-768x485.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/01/image-380-750x474.png 750w, https://www.thecoinrepublic.com/wp-content/uploads/2024/01/image-380.png 1087w" sizes="(max-width: 1024px) 100vw, 1024px">
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 Source: CV VC
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Switzerland has been among the world’s most popular financial centers globally and is promoting the inclusion of crypto assets in finance since 2016. Moreover, it is home to some leading blockchain ecosystems and has adopted pro-crypto laws during the past few years. In a way, the nation is grabbing almost every opportunity associated with blockchain that is coming its way. 
Like many nations, Switzerland too treats <a href="https://www.thecoinrepublic.com/2024/01/17/can-turbo-crypto-show-bigger-movements-in-january-and-beyond/" target="_blank" rel="noreferrer noopener">cryptocurrency </a>as an asset instead of security. The country’s authority on taxation, Swiss Federal Tax Administration (SFTA), has subjected these assets to wealth, income and capital gains taxes transparently. 
Liechtenstein has passed the Token and Trustworthy Technology Service Providers Act which took effect in January in 2020. The act allows for tokenization of different types of assets which enables their capacity to host digital tokens legally. This is among the reasons the region attracts blockchain entrepreneurs at large. 
“Each of the 1,290 entities here reflects Switzerland’s innovative legacy, fortifying local and global economies,” CV VC CEO Mathias Ruch mentions in the report. “This report is not about the bulls nor the bears, but rather the builders who are delivering trustworthy systems and a better way for the world to both interact and transact.” 
Private banks like Satander announced last year that they will provide crypto trading services to their Swiss clients. Web3-based financial companies have an added advantage as the region bridges traditional banking to a still nascent crypto market. Swiss banks like Vontobel and Julius Bar have met with crypto specialists in the past for trading and asset storage services. 
After a long dormant crypto winter, cryptocurrencies have managed to rebound somehow. Currently, they have a market capitalization of $1.68 Trillion at the time of writing. With Bitcoin (BTC) halving due in the coming months, analysts believe a positive rally may occur following the event.

Zug and Zurich Are Leading The Switzerland Crypto Narrative

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Thecoinrepublic.com

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