Welcome to
WELCOME TO ONE OF THE WORLD’S LEADING BLOCKCHAIN AND CRYPTOGRAPHIC TECHNOLOGY ECOSYSTEMS Why Switzerland?
• Best Package • Advanced Regulation • Funding & ICO Hub • Favourable Tax System • Strong Community & Ecosystem • Deep Talent Pool
2 Why Switzerland?
• Deep-seated culture of privacy protection, confidentiality and legal certainty • Low taxes and friendly regulation environment • Friendly, accessible, supportive government «Switzerland’s decentralized, • Supportive startup bottom-up political culture is a ecosystem with world- natural fit for the decentralized, class service providers bottom-up blockchain technologies • Number 1 in the world for of the future.» competitiveness and productivity*
3 *WEF Global Competitiveness Report 2016–2017 Why Switzerland?
• Sophisticated infrastructure and educational world- leading and research institutions • Visionary entrepreneurs and cryptographic technology pioneers • Deep pools of capital and world-class engineering «World-leading infrastructure talent in telecom, financial services, • Switzerland is in the center of Europe with excellent air, education, technological rail and road connections innovation.» • Vibrant community and fantastic quality of life
4 Advanced Regulation «Today, Switzerland is leading • Over four decades perfectly the establishment of a working self regulating system in the financial sector regulatory environment for a • In general, regulator and digital economy.»* authorities are positive (e.g. new FinTech rules, acceptance of Bitcoins, ID based on Blockchain) • The Swiss liberal approach: Not every Convertible Crypto Token (CC) can be misused for Money Laundering and should be subject to regulation (see FATF VC 2015, 13) • Regulate the necessary: Intermediary transactions (third party transactions) are in the focus (i.e. Money Exchange and Money Transmitting)
5 * BitcoinExchangeGuide.com Advanced Regulation New Swiss FinTech rules
Switzerland adopts revised banking regulations in order to New Fintech License granted by FINMA: facilitate the business activities of FinTech companies. • For institutions which are restricted to the deposit-taking Settlement account exemption: business (acceptance of third party funds) and thus do not operate in the lending business, less stringent • Companies are allowed to hold funds in a settlement regulatory requirements should apply than those for account for 60 days without the operation of such classical banks. account being deemed an acceptance of public funds subject to licensing by FINMA. • Requirements: The funds under management may not exceed the overall value of CHF 100 million. For Innovation space (“sandbox”): institutions with the new license, the minimum capital • Companies are allowed to hold public deposits of up to should amount to 5% of the accepted funds, but no less CHF 1 million without having to obtain a banking license than CHF 300,000. by FINMA. This fact must be disclosed, however. The Acceptance of Cryptocurrencies current money laundering provisions are applicable in the case of a sandbox. This new innovation space will enable • Swiss private bank Falcon has become the first FinTech companies to try out experimental new business mainstream wealth manager in the country to allow models without immediately having to obtain a banking clients to invest bitcoins in their portfolios. The Zurich- license. based bank has been given the green light to accept the cryptocurrency by the Swiss financial regulator.
6 Funding & ICO Hub
• Straightforward access to funding • Historical strength in financial services • Well established financial center with global network • Favorable regulatory environment for financial services «World leading hub in coin- • Accessibility of venture and token launches» capital financing • Business incubators
7 Crypto Valley: World leading hub for ICOs Crypto Singapore Regulatory clarity & high clear Valley volume ICOs lead to unique
competence UK USA
unclear Regulatory Clarity Regulatory as of July 2017 • 10+ large scale ICOs done low high Volume of Token Generating Events (ICOs) • 40+ ICO in process as of July 2017. Based on Autonomous Research LLP, 2017 • 170+ ICO in pipeline
Selected Examples: «Crypto Valley, the place to be • Tezos ($232m) for your ICOs» • Bancor ($157m) • Ethereum ($18m)
8 Favorable Tax System «Cantonal tax competition • No VAT on Bitcoin promotes efficiency in the transactions provision of state services and • Competitive effective corporate tax rates e.g. high-quality infrastructure.» • Schwyz: 15.27% • Zug: 14.60% • Zurich: 21.15% • Competitive taxation for individuals • No taxes on individual capital gains • High number of double tax treaties • No exit taxation
9 Strong Community & Ecosystem «Supportive startup • Excellent startup ecosystem ecosystem with world-class • Existing crypto technology service providers.» clusters in Zurich and Zug • Existing crypto community and startups (CVA, Bitcoin and FinTech Association, Ethereum etc.) • Labs, Incubators, Accelerators • Real life field tests (Bitcoin is a local government accepted currency
10 Strong Community & Ecosystem
11 Talent «Number 1 in the world for • Switzerland & Crypto Valley great in attracting ease of attracting and local and abroad talent retaining world-class talent.»* • Leading universities and technology research (e.g. ETH) • Swiss work systematically and accurately, they are innovative, they are self- starters, and they are honest • Great variety in cultures and languages
12 *INSEAD Global Talent Competitiveness Index 2017 Crypto Valley Association «World’s best ecosystem for • Thriving Ecosystem blockchain and other • Offers events to engage cryptographic technologies with crypto pioneers, and businesses.» industry experts, investors etc. • Supported by industry associations, financial institutions, local government etc. • Providing affordable working spaces, professional service providers, pools of capital etc.
13 Greater Zurich Area
• International contact partner for promotion and marketing of Zurich economic region • Service-oriented competency center with a clear focus on «Greater Zurich Area acts as a international companies mediator between international that can offer high and companies and entrepreneurs especially sustainable looking to settle in the area and value for the Zurich local interests and requirements.» economic region
14 Contact Information
Crypto Valley Association: Greater Zurich Area:
www.cryptovalley.swiss www.greaterzuricharea.com
@thecryptovalley @GreaterZurich
Crypto Valley Association Greater Zurich Area
15 Appendices
16 Crypto Valley Service Partners
Lakeside Partners Early Stage Investors with focus on the Blockchain industry
Lakeside Crypto Labs Crypto Valley Co Working / Accelerator / (in the Lakeside Business Center) Incubator
MME Legal, Incorporation, Foundations, ICO Advisory
PwC Swiss & international Tax-, Legal-, Regulatory Advisor Auditor for Crypto Funds & Financial Institutions Blockchain Software Auditor
17 Selected other specialized Partners
Digital Finance Compliance Verein (DFC)
Proptech company for asset- and portfolio Reamis management Developer of AppFlow, a continuous deployment TTSS and provisioning solution
Zolentis Global advisory and investment company
18 Selected Crypto / Blockchain Companies
Addfin Web-based service solution for professional investors, ZG Financial services, consulting, bitcoin ATM-project, bitcoin Bitcoin Suisse certificates, ZG Bitfinitum Blockchain platform for industry consolidation, ZG Bitcoin based, new payment processing and trading, micro- Bithaus lending solutions for emerging markets, ZG Blockchain Source Consulting company focusing on blockchain, ZG
BlockLogiX Consulting on crypto currencies and blockchain, ZG
ConsenSys Developer for blockchain, focused on Ethereum, ZG
Crypto Cash Crypto currency services, KYC-support, ZH
Dfinity The Intelligent Decentralized Cloud 19 Selected Crypto / Blockchain Companies (cont’d)
Ethereum Blockchain, p2p contracts, cryptocurrency ether, ZG
Etherlabs ZG
Gatechain Blockchain based solution for trade finance, ZH
Green Shield ZG
InCube Consulting and technology company, ZG
Iprotus Software development and integration for blockchain, ZG
Lykke Bitcoin based global financial & asset marketplace, ZH
Metagrid Systems Decentralized software & technologies, ZG
Monetas Decentral network for money and wealth transaction, ZG
20 Selected Crypto / Blockchain Companies (cont’d)
Patria Digitalis Open application service provider, ZG
Sapphire Cashflow forecasting, working capital optimization, ZG
Shape Shift Instant cryptocurrency transaction platform, ZG Blockchain entertainment studio, rights management Singular DTV platform, ZG Swiss Mine 360° digital currency services, ZH
Tezos Self-amending cryptographic ledger Digital bank: real time account opening, cross border WB21 payments incl. Bitcoin, ZH Wealth Arc Management Platform for Financial Advisors, ZH
Xapo Most secure bitcoin wallet, data storage, ZG
21 Selected Crypto / Blockchain Companies (cont’d)
Etherisc Decentralized insurance applications, ZG
Golem Project Sharing economy of computing power, ZG
FoodBlockchain XYZ ZG
Melonport Blockchain software for asset management, ZG
Validity Labs Workshops covering blockchain technology, ZG
Gnosis Platform for prediction market applications, ZG
22 Labs engaged in Blockchain Computational Social Research focus on social coordination, crime and conflict as Science well as collective opinion formation and the wisdom of crowds
Research in the design and analysis of security protocols for System Security Group wired and wireless networks and systems Information Security and Research on information security, cryptography and Cryptography Research information theory Group, ETH Zurich Current research on distributed computing, distributed systems Distributed Computing (Bitcoin), wireline networks (software defined networks) Research projects using the design principles of software- Networked Systems designed networkings (SDN) on mobile networks and internet routing Validity Labs & Summer Workshops covering blockchain technology for managers, Blockchain software developers and lawyers (in collaboration with ETH)
23 Selected Incubators / Accelerators
Crypto Valley Labs, ZG
F10 Incubator, ZH
Fintech Fusion, GE
Impact HUB, ZH
NexusSquared, ZH
Swiss Startup Factory, ZH
Thomson Reuters Incubator, ZG
Venturelab
Venture Kick
24 Ethereum
«The liberal regulatory system was decisive for settling our business in Zug.» Vitalik Buterin, Founder of Ethereum
Ethereum is a Swiss non-profit organization and The possibilities are vast and unexhausted, the handling decentralized public blockchain-based distributed easy, what makes Ethereum a powerful game changer. computing platform, featuring smart contract functionality. It provides a decentralized virtual machine, Ethereum was initially proposed in late 2013 by Vitalik the Ethereum (EVM), that can execute peer-to-peer Buterin, a cryptocurrency researcher, one of its kind contracts using its own cryptocurrency called Ether. programmer and incumbend CEO. The initiative was crowdfunded in 2014 by fans around the globe and Ether is traded on cryptocurrency exchanges. Its very officially launched in 2015 in Zug. Today Ethereum powerful shared global infrastructure allows to move all employs 30 developers from different parts fo the world kinds of value around safely due to a communal global of which 4 work in its headquater in Zug. Ethereum asset recording. Therefore applications run exactly as Foundation currently operates around $13 million programmed without any possibility of downtime, whereas its market cap currently stands around $1 censorship, fraud or third party interference. billion.
25 Monetas
«One of Zug’s attractions is the exceptional level of expertise available in the areas of cryptography and security.» Johann Gevers, Founder and CEO of Monetas
Monetas is developing a decentralized, global platform for After founding Monetas in 2012 in Canada, Greves moved financial and legal transactions. A suite of applications and his startup in 2013 to the canton of Zug. Since then, he has utilities form a complete digital ecosystem. Users never been spearheading the “Crypto Valley” initiative, and has leave and withdraw physical cash, because it is cheaper to attracted numerous renowned cryptofinance companies to stay digital than to switch to physical cash. Its cutting-edge is the area. To date Monetas has raised over 7m US$ and the a crypto-financial software technology that makes transfers company's value is estimated at 93m US$ (Jan 16). of value incredibly safe, fast, and at very low cost - anywhere in the world, at any time. With this Today, 27 employees from all over the world are involved in groundbreakting system the company strives to connect the further development of Monetas’ transaction platform. anyone with a smartphone to financial services. In 2016 Grevers is sure «With such a highly talented and passionate Monetas is goint to open up its application in 12 African group of people we’ll build Crypto Valley into a powerhouse countries, providing its services to more than 300 million of the global economy». additional people.
26 Xapo
«In comparison with other potential locations, Switzerland provides all the benefits of a modern society including a highly educated population, a fiscally responsible government and a well-maintained physical and technological infrastructure.» XAPO LLC
Xapo is a bitcoin service provider based in the Xapo was one of the very first to move into the region, in Greater Zurich Area. It combines the convenience of 2015. Soon after relocating its headquarters from Silicon an everyday bitcoin wallet (bitcoin debit card, easy Valley Xapo created a dedicated page to point out the fund management tool and real-time transactions) top ten reasons why they felt FinTech startups should be with the security of a deep cold storage vault. Xapo's moving to Switzerland. Not listed on the page is that data and customer bitcoins are stored in offline, digital currencies are treated as foreign currencies in secure, encrypted servers in one of the most secure Switzerland, what makes the tax environment for data centers in the world and are never connected to businesses very competitive. the internet. Also, a satellite helps to continually Xapo has raised more than $40 million from a group of monitor and validate system-wide security. global investment partners and employs over 11 people.
27