Monthly Archives: December 2018

Train: Blockchain Paradise in the Swiss Crypto Valley

There are now a number of states, cities and city states that give themselves the predicate “Blockchain-Land” or “Blockchain-City”. Meanwhile, the Swiss town of Zug has long since become one of the most attractive locations for Fintech companies and is no longer considered a “Crypto Valley” only by connoisseurs of the scene.

The Canton of Zug in Switzerland also enjoys an impeccable reputation beyond the borders of the Swiss Confederation. Not only is it regarded as the most prosperous canton in the midst of an already above-averagely wealthy country, the city of Zug, with its beautiful old town, is also idyllically situated in the midst of a valley of rivers and lakes and offers a correspondingly high quality of life. German visitors in particular appreciate the train, which is located in German-speaking Switzerland.

Now the canton is getting ready to play in the first league in the news spy

It is estimated that there are already between 50 and 100 blockchain start-ups in the entire canton – in this density this would be unique worldwide in terms of the population of Zug. The reasons for the high attractiveness of Switzerland as a business location can be found relatively quickly in the news spy according to onlinebetrug: a relatively low tax burden for companies compared with Europe, coupled with a regulatory framework that relies more on market forces than on state power and also dispenses with excessive regulation of the blockchain sector. Zug has thus found an approach on which many other countries around the globe are currently still working.

Dolfi Müller, longstanding mayor of Zug – or as the Swiss say: mayor – is not entirely uninvolved in this. The filmmaker Manuel Stagars, who shot the documentary “Fintech Made In Switzerland” last year, describes Müller in an interview with the Luzerner Zeitung as a pioneer in the blockchain scene. He is characterized by the fact that he is not afraid of the challenges of digitization, but is optimistic and prefers to accept new developments rather than be surprised by them. In this way, the Zug head of government is creating brilliant challenges for the “global village” of Zug.

Crypto Valley

In particular, young companies and start-ups are to be lured to Zug in order to further expand the superior corporate culture of the location. In the canton, for example, the status of Krypto Valley has been proclaimed, based on the pioneering location for technology start-ups in the USA. Zug is thus targeting the blockchain sector, whose companies are recruited by the Zug canton. For example, well-known and internationally active Blockchain start-ups such as Xapo, ShapeShift, Monetas and Etherisc have their headquarters in Zug, as do the Ethereum Foundation and management, even though founder and CEO Vitalik Buterin recently moved his residence from Zug to Singapore.

A milestone in Zug’s development into a Blockchain location was the acceptance of Bitcoin payments in the city, which was decided in May 2016. This officially enabled Zug’s citizens to pay for public services in Bitcoin – a revolutionary large-scale project. Despite the fact that only a fraction of the citizens accepted this possibility, the Zug government’s initiative sent an important signal to the blockchain and crypto scene: “We are open to the new technology and ready to prepare fertile ground for its further development in our canton.

Nevertheless, the canton is not resting on its laurels, but is constantly striving to promote and underline Zug as a financial centre and its status as an innovative hub for the crypto sector. In order to focus even more on the field of investments in the crypto sector in the future, the Crypto Finance Conference to be held in St. Moritz in January 2018 is therefore primarily aimed at investors who are interested in participating in the further development of the blockchain sector. The aim is already to work on a successful future for the Swiss Crypto Valley.

BaFin orders the hiring of Bitcoin crypto trader providers

On 19 December, the Federal Financial Supervisory Authority (BaFin) ordered the immediate discontinuation of the financial transfer business of Swiss Convene GmbH. On it offers financial services for Bitcoin & Co., which were not approved by BaFin.

CfD Premium pretends to offer licensed Bitcoin crypto trader

What is a tongue twister for learners of German is a nightmare for many financial service providers: the Federal Financial Supervisory Authority (BaFin). The Federal Financial Supervisory Authority has now ordered Swiss Convene GmbH to discontinue its crypto trader services with immediate effect. On the website it had offered CfDs for crypto trader currencies such as Bitcoin, Ethereum or Ripple without the permission of the authority.

On its homepage CFD Premium describes itself as one of the leading brokers:

“CFD Premium is one of the most innovative forex brokers. The platform] offers a broad spectrum of state-of-the-art technical solutions. It offers high-quality trading platforms and high liquidity for both new and experienced traders. Our team of experts can help you invest safely in a secure and regulated environment.”

BaFin orders immediate termination

Well, that’s a lie – a regulated environment is unlikely to be the case with an unlicensed one. This is how BaFin writes:

“Swiss Convene GmbH accepts funds from private individuals on its business accounts and forwards them to various foreign accounts of various companies. The companies are predominantly domiciled abroad. In this way, customers of the unlicensed Internet trading platform, among others, deposit funds so that they can be credited to their trading account held internally on the trading platform.”

Furthermore, the authority refers to a warning issued in August, in which it had already warned against such providers. According to this warning, the BaFin could increasingly observe that unlicensed trading is taking place, especially in the area of contracts for difference and in forex trading. An indication of this is the often hidden imprint, which often refers to offshore mailbox addresses.