While the global industry built around digital assets is losing funds and jobs are dropping off, Switzerland seems to be weathering the storm relatively well, one piece of research claims. In fact, more crypto companies settled in the country during the past turbulent year than those that left it, or the business altogether.
Crypto Valley in Switzerland Maintains Number of Residents Despite Crypto Winter
The market downturn and the collapse of platforms like cryptocurrency exchange FTX and the Terra-luna ecosystem sent shockwaves through the industry. The negative events of 2022 led to losses for investors, customers, and companies while major players like Coinbase and Genesis announced layoffs.
However, data compiled by the venture capital firm CV VC shows that crypto-friendly Switzerland hasn’t witnessed anything too spectacular, Swissinfo reported. According to its ‘Top 50’ report, 183 Swiss blockchain businesses went bust last year, but 190 startups and foreign companies opened new offices.
The researchers also found that the Swiss Crypto Valley, centered in the canton of Zug, now has approximately the same number of entities as in 2021 — currently 1,135. They employ 5,766 people, which is only around 4% less than before the crypto winter started.
The most prominent Swiss-registered companies that went under were FTX Europe and the crypto asset manager Covario. “The Swiss branch of U.K.-based crypto lender Nexo is also under the microscope after the company’s Bulgarian offices were searched,” the news portal remarks.
Meanwhile, none of the other big names has admitted to being severely impacted by the ongoing volatility in the sector. One of the reasons for that, the article points out, is the attitude of Swiss authorities regarding potentially corrupt enterprises.
For example, Switzerland’s Financial Market Supervisory Authority blocked an attempt by the FTX subsidiary to acquire the Swiss Neue Privat Bank, citing insufficient regulatory oversight over the group’s other global activities.
The CV VC study also shows that the valuation of the top 24 blockchain companies increased 55% to $9.7 billion despite crypto assets losing significant value. The biggest gainers among them are 21Shares, an issuer of crypto-backed exchange traded certificates, and Gnosis Safe, which manages Ethereum-based assets. Both have been valued at over $1 billion, according to the report.
Do you think Switzerland can lead the way to a recovery in the crypto space? Tell us in the comments section below.
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