Swiss Crypto Market an Exception
It is true that the crypto economy has decreased alarmingly since the end of 2021 and that recession has taken over the industry.
It is also true that the crypto winter season is prolonging beyond everybody’s expectations. Yet it is also true that crypto winter has seriously affected the industry’s growth worldwide except for one country in particular.
This exception, where the crypto industry hasn’t been affected much by the economic crisis or through the prolonged winter season, can be found in Switzerland.
The Swiss crypto market is thriving fast and not even Terra Luna or FTX’s collapses couldn’t do anything to prevent this growth.
There are millions of investors around the globe who may have suffered huge losses and the same can be found in Switzerland.
However, a study showed that the Swiss crypto industry is going up instead of declining as is the case with most countries.
The compiler of the report is CVVC which is a renowned venture capital firm.
CVVS’s report suggests that Switzerland is one of the top crypto-friendly countries in the world.
Report Highlights Growth Instead of Decline
CVVS report reveals ‘Top 50 Countries’ in the world where crypto growth had been spectacular even in harsh environments.
Amongst these ‘Top 50 Countries’, CVVS ranks Switzerland at the number one spot for several reasons.
The report first of all notes that during the year 2022, approximately 183 local virtual asset trading platforms were shut down.
However, contrary to this shutting down, subsequently more than 190 fresh crypto startups popped up in Switzerland in the same year.
Most importantly, the fresh Swiss crypto startups were installed in Switzerland with their physical presence in the country.
Swiss Crypto Valley Firmly Held Its Ground
At the time of massive crypto adoption, Switzerland was the only country that developed a Swiss Crypto Valley in Zug. This valley was designed as a business zone exclusively for crypto service providers.
In 2021, this valley was comprised of over 1,135 crypto service providers. The study notes that this number of crypto service providers in the valley hasn’t changed a bit.
All 1,135 of them are standing tall while the valley is holding its ground firmly.
However, the only change was noted in the number of employees which has now been reduced by 4% since 2021.
Swiss crypto investors were heavily relying on top crypto firms of the world, including FTX.
The report hence notes that only FTX has fallen since 2021 on which Swiss crypto investors were relying. While other heavily relied upon platforms are still surviving like Binance, Coinbase, etc. identifies CVVS’s report.
On the other hand, FTX was amongst the top few firms which were registered in Switzerland. Though FTX has collapsed majority of Swiss-registered firms continue to survive.
For the time being, Covario, which is a crypto AUM firm registered in Swiss, is going through an unavoidable crisis. Similarly, NEXO is yet another Swiss-registered crypto lender which is under investigation.
Swiss Regulator’s Efforts to Keep the Industry Clean
One of the reasons why the Swiss crypto market wasn’t affected much was because of its financial regulator i.e. Financial Market Supervisory Authority.
The Swiss regulator focuses on keeping the industry clean and hence if there is an attempt to the contrary, it is dealt with strictly.
For instance, prior to its fall, FTX had tried to acquire a local bank through one of its subsidiaries. However, with the timely intervention, the Swiss regulator stopped this acquisition and warned FTX.
In the end, the study reveals that while cryptocurrencies were losing value, the valuation of approximately two dozen crypto entities surged by 55%.
Their collective valuation was over $4 Billion in 2021 but now it has increased up to $9.7 Billion. The top earner in terms of valuation was ‘21Shares’ which is involved in issuing digital currency-based trade certificates.
At number two came ‘Gnosis Safe’ which is involved in managing Ether coins.