Switzerland Less Affected by Crypto Industry Crisis, Study Finds

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As the global industry built around digital assets loses funds and jobs dwindle, Switzerland appears to be weathering the storm relatively well, a study finds. In fact, more crypto businesses have moved into the country in the past turbulent year than those that have left it, or the business altogether.

Crypto Valley in Switzerland Maintains Resident Counts Despite Crypto Winter

The market downturn and the collapse of platforms such as the FTX cryptocurrency exchange and the Terra-luna ecosystem have sent shockwaves through the industry. The negative events of 2022 resulted in losses for investors, customers and businesses while major players like Coinbase and Genesis announced layoffs.

However, data compiled by venture capital firm CV VC shows that crypto-friendly Switzerland hasn’t seen anything too spectacular, Swissinfo reported. According to its Top 50 report, 183 Swiss blockchain companies went bankrupt 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 roughly the same number of entities as in 2021, currently 1135. They employ 5,766 people, about 4% less than before the start of the crypto winter.

The most important Swiss-registered companies that went bankrupt were FTX Europe and crypto-asset manager Covario. The Swiss branch of UK-based crypto lender Nexo is also under the microscope after the firm’s Bulgarian offices were raided, the news portal notes.

Meanwhile, none of the other big names admitted to being badly hit by the current volatility in the sector. One of the reasons for this, the article points out, is the attitude of the Swiss authorities towards potentially corrupt companies.

For example, the Swiss Financial Market Supervisory Authority blocked an attempt by subsidiary FTX to acquire Switzerland’s Neue Privat Bank, citing insufficient regulatory oversight over the group’s other global businesses.

The CV VC study also shows that the valuation of the top 24 blockchain companies increased by 55% to $9.7 billion despite crypto assets losing significant value. The biggest winners among them are 21Shares, an issuer of crypto exchange-traded certificates, and Gnosis Safe, which manages Ethereum-based assets. Both were valued at more than $1 billion, according to the report.

Tags in this story Crypto, crypto industry, Crypto Nation, crypto sector, Crypto Valley, Crypto Winter, Cryptocurrencies, Cryptocurrency, CV VC, data, report, Research, study, Swiss, Switzerland

Do you think Switzerland can lead the way for a recovery in the crypto space? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: Being a writer is who I am, rather than what I do. Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons, Prath / Shutterstock.com

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