Crypto Valley is considered one of the most "crypto-friendly" regions in the world. But what is actually happening within the blockchain ecosystem? The "Crypto Valley Roundup" is intended to provide insight and highlights selected events every two months.
With the first blockchain companies settling in the Zug area from 2013 onwards, the term "Crypto Valley" was soon born in reference to "Silicon Valley". Thanks to politics and regulation, Switzerland was able to create the necessary legal certainty for a flourishing ecosystem around blockchain and cryptocurrencies at an early stage.
The regulator has already been active since 2015. Internationally, this is very early for the blockchain sector. Not least because of this, the area enjoyed new company settlements and constant further development. In the meantime, the ecosystem has advanced into various industries and the Crypto Valley has also grown geographically far beyond the Zug area. So it's high time to take a closer look at what's going on.
Crypto exchange FTX opens headquarters in Switzerland
FTX is one of the leading cryptocurrency exchanges and is expanding its presence to Europe and the Middle East. FTX Europe's headquarters was set up in Crypto Valley to enjoy Switzerland's clear regulations and favorable regulatory environment. This solidifies Zug's role as a hub for global crypto companies looking to establish themselves in the heart of Europe.
"We are excited to launch our European business in a regulated form to better serve the people of the continent. As we continue to grow, we are constantly looking for opportunities to be properly licensed and regulated in each market we enter." – Sam Bankman-Fried, CEO and Founder of FTX
The company's European arm will now offer all products and services to European clients through a licensed investment firm with passport-enabled licenses throughout the European Economic Area. Users in these regions will be able to trade a variety of cryptocurrency products based on FTX's trading technology and its range of digital assets.
Swiss stock exchange SIX expands crypto offering
US financial services provider Fidelity launched two new ETPs on the SIX Swiss Exchange. Fidelity's Bitcoin ETP in US dollars and Swiss francs allows investors to benefit from a growing offering in the crypto segment of SIX Swiss Exchange. Fidelity brings the number of crypto ETP issuers to 10, offering a total of 133 ETPs. ETPs and structured products combined, investors have a total of 208 products to choose from to invest in 18 cryptocurrencies.
The wide variety of tradable crypto products is appealing to investors, according to SIX. Trading volume reached CHF 8.6 billion in 2021, an increase of 673% from the previous year (CHF 1.1 billion). The number of transactions also increased more than sixfold: A total of 354,542 trades were made in crypto products, an increase of 634% compared to 2020 (48,300).
More blockchain apprentices in Crypto Valley
There is probably no other industry where the demand for talent is currently as high as in the blockchain and crypto sector. However, the pool of Swiss talent is limited. While degree programs and advanced training are being greatly expanded, there is a lack of opportunities to complete basic training in this field. Cryptix is another Swiss company implementing blockchain apprenticeships. It trains apprentices according to a new curriculum, making it one of the few companies offering young people training in future-oriented fields such as blockchain, cryptocurrencies, fintech and startups.
Mediamaticians work and learn at the interface of marketing, IT and administration. During the four-year apprenticeship at Cryptix, the apprentice works in international teams for a wide variety of startups from the fintech industry. In doing so, he not only has his finger on the pulse of the blockchain and crypto scene, but can also actively participate in the development of young companies and support startups in their first steps.
Crypto companies gather in Lucerne
Another edition of the Crypto Valley Conference took place this year; already the fourth in a row. For two days, over 40 industry representatives presented on diverse topics. From blockchain technology to decentralized financial applications (DeFi) and crypto regulation - the entire field was comprehensively covered.
In addition to dozens of presentations, industry representatives debated during podium discussions and attendees were able to interact with a wide variety of crypto companies at the exponents' stands. CVJ.CH was on site and had conversations with some of the speakers, which will soon appear in the form of interviews.
Digital IPO of a Swiss crowdfunding platform faces headwinds
Nowadays, a company no longer needs to go public in order to sell company shares. Switzerland has been developing a regulatory framework for distributed ledger technology (DLTs) since 2014, following the principle of "technology neutrality". As a result, since February 2021, it has been possible in Switzerland to offer digital blockchain shares to the general public without having to bother with the traditional route.
At the beginning of June, the Swiss crowdfunding platform WeMakeIt took advantage of this opportunity and launched its digital IPO. Once the campaign has been completed, participants will be registered in the digital share ledger of WeMakeIt AG. As of August, it should then be possible to effectively digitize the shares. This will allow shares to be transferred from person to person without an intermediary or bureaucracy, according to the project description. But a significant portion of their target audience seemed less pleased, primarily blaming the energy consumption of the Ethereum blockchain.
