CoinDesk has placed Zug in first place in its Crypto Hubs 2023: The 15 Best Places to Live Freely and Work Smart rankings. The New York information platform for the global crypto economy based its analysis of existing crypto hubs on a methodology comprising eight criteria, including a conducive regulatory environmental, digital infrastructure and quality of life.
In a detailed article, CoinDesk explains why it gave first place to Zug: “Tiny is mighty when it comes to Zug’s performance.” The small town, which was the birthplace of the Ethereum cryptocurrency in 2015, “has it all: regulatory clarity, crypto-friendly banks and a lively crypto job market and events calendar.” However, since Zug is so small, the nearby cities of Zurich, Bern and Geneva are also considered part of Crypto Valley.
Whereas the uncertain regulatory environment in the U.S. has discouraged crypto companies from settling there, “in Switzerland you know precisely what you’re going to get, and they make it easy for you. There are even local ‘crypto banks’ like SEBA and Sygnum, which provide crypto start-ups with the basics like tax statements, coin storage and deposit insurance.” Taxes are low, there are large numbers of fintech companies, the University of Zurich has a strong blockchain center, and the Zug government has just pledged 39 million Swiss francs for a blockchain research center.
All this makes Switzerland “a convenient place to legally park your company”, but it is also “one of the few places on the planet that makes New York City feel cheap.” As a result, according to Alexander E. Brunner, a former member of Zurich’s parliament and author of the book “Crypto Nation Switzerland”, Switzerland is not the right place for talented developers and coders. The rebellious atmosphere of the early years in Crypto Valley has also given way to a new appreciation for regulatory compliance, licenses and even partnership with the banks. “Crypto is growing up, in Switzerland.”
