While global industries built around digital assets are losing money and jobs, Switzerland seems to be weathering the storm relatively well, one researcher claims. In fact, more crypto companies have settled in Switzerland in the past turbulent year than have left the country or left the business altogether.
Swiss Crypto Valley maintains its number of residents despite the crypto winter
Market downturns and the collapse of platforms like cryptocurrency exchanges FTX and the Terra-luna ecosystem shocked the industry; negative events in 2022 led to the loss of investors, customers, and businesses, with major companies like Coinbase and Genesis announcing layoffs
However, crypto-friendly Switzerland has not witnessed anything too spectacular, according to data compiled by venture capital firm CV VC, reports Swissinfo. According to its “Top 50” report, 183 Swiss blockchain businesses went bankrupt last year, while 190 startups and foreign companies opened new offices.
The researchers also found that the Swiss crypto valley, centered in the canton of Zug, has almost as many entities as in 2021, now 1,135. They employ 5,766 people, which is only about 4% less than before the crypto winter began.
The most prominent Swiss registered firms that went under were FTX Europe and crypto asset manager Covario.” The Swiss branch of U.K.-based crypto lender Nexo is also under the microscope after the company’s Bulgarian office was searched,” the news portal said.
Meanwhile, none of the other big names admit to being seriously affected by the ongoing volatility in the sector. One reason, the article notes, is the Swiss authorities’ attitude toward potentially corrupt companies.
For example, the Swiss Financial Market Supervisory Authority blocked an attempt by a subsidiary of FTX to acquire Neue Privat Bank in Switzerland, citing insufficient regulatory oversight of the group’s other global activities.
The CV VC study also shows that despite crypto assets losing significant value, the valuation of the top 24 blockchain companies rose 55% to $9.7 billion. Among the biggest gainers were 21Shares, an issuer of crypto-backed Exchange Traded Certificates, and Gnosis Safe, which manages Ethereum-based assets. Both are valued at over $1 billion.
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