Welcome to

WELCOME TO ONE OF THE WORLD’S LEADING AND CRYPTOGRAPHIC TECHNOLOGY ECOSYSTEMS Why Switzerland?

• Best Package • Advanced Regulation • Funding & ICO Hub • Favourable Tax System • Strong Community & Ecosystem • Deep Talent Pool

2 «Switzerland’s decentralized, bottom-up political culture is a Why Switzerland? natural fit for the decentralized, bottom-up blockchain technologies • Deep-seated culture of of the future.» privacy protection, confidentiality and legal certainty • Low taxes and friendly regulation environment • Friendly, accessible, supportive government • Supportive startup ecosystem with world- class service providers • Number 1 in the world for competitiveness and productivity*

3 *WEF Global Competitiveness Report 2016–2017 «World-leading infrastructure Why Switzerland? in telecom, financial services, education, technological • Sophisticated infrastructure innovation.» and educational world- leading and research institutions • Visionary entrepreneurs and cryptographic technology pioneers • Deep pools of capital and world-class engineering talent • Switzerland is in the center of Europe with excellent air, rail and road connections • 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 , ID based on Blockchain) • Regulate the necessary: Intermediary transactions (third party transactions) are in the focus (i.e. Money Exchange and Money Transmitting) • New guideline for Initial Coin Offerings published by FINMA on 16 February 2018

5 * BitcoinExchangeGuide.com New ICO guideline by FINMA

In its media release of 16 February 2018 the Swiss Financial Market Supervisory Authority FINMA published its long-awaited guidance on Initial Coin Offerings (ICO) which defines the minimum information required and principles for requests for negative clearance. An ICO is a digital form of public fund-raising for entrepreneurial purposes. Blockchain-based “coins” or “tokens” are sold in exchange for (e.g. ) or FIAT currencies. The token represents a certain value or service that the issuer defines prior to the ICO. In its new guidance FINMA rightly points out that generalized statements with respect to the applicability of financial market laws is not possible due to the variety of tokens and ICOs. Instead, every ICO must be assessed individually on a case-by-case basis. Thereby, FINMA basically distinguishes between three different types of tokens (although hybrid forms are possible): Payment tokens: These are considered standard crypto currencies. They can be used as means of payment for the purchase of goods or services as well as for the transfer of money and values. They are not associated with any other functions or projects. Utility tokens: They provide access to a blockchain-based applications or services. Investment tokens: These tokens represent assets (such as shares of companies, revenues or entitlements to dividends or interest payments). Depending on its design, this type of token is similar to a share, bond or derivative financial instrument.

6 Funding & ICO Hub «World leading hub in coin- and token launches» • Straightforward access to funding • Historical strength in financial services • Well established financial center with global network • Favorable regulatory environment for financial services • Accessibility of venture capital financing • Business incubators

7 World leading hub for ICOs Singapore Crypto Valley Regulatory clarity & high volume clear ICOs lead to unique competence

UK USA Regulatory Clarity Regulatory As of July 2017: unclear • 10+ large scale ICOs done low high • 40+ ICOs in process Volume of Token Generating Events (ICOs) • 170+ ICOs in pipeline As of July 2017, based on Autonomous Research LLP, 2017

Selected Examples: • ($238m) • Bancor ($157m) • The DAO ($142m) • ($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.» • Lucerne: 12.32% • : 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 of >350 blockchain ecosystem with world-class companies service providers.» • Existing crypto technology clusters in Zurich, Zug and Lucerne • 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 are great in ease of attracting and retaining attracting local and world-class talents.»* abroad talent • Leading universities and technology research (e.g. ETH, HSLU) • 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 The Southern Alps Chapter «Tailoring and growing • Contributes to grow and innovate CVA focus areas in the region.» blockchain and cryptographic technologies in Southern Switzerland and Northern Italy • Facilitates the cross-sector applicability of blockchain systems for the broader benefit and advance of communities, citizens and businesses • Aims at bringing clarity and confidence around blockchain technology • Aggregates talents, competencies, know- how and resources by fostering the convergence of business, financial, technology and academic expertise

Domains at reach Chapter Promoters • Finance and banking • Gianni Minetti (Chair) • Smart Cities • Alessandro Cavadini • Energy and utilities • Alessandro Regogliosi • Healthcare and education • Mattia Rattaggi • Manufacturing • Alberto De Lorenzi • Fashion • Julia Arneri Borghese • Logistics 14 The Romandie Chapter «Profound experience as unique financial center in the world and in • Supporting startups and companies acting in blockchain and cryptographic technologies in Geneva and Lausanne providing support to startups areas makes Romandie a proactive actor • With its multicultural nature and its well-known, international financial sector, Geneva provides a strong in blockchain and crypto field.» framework for ICO projects • Geneva acts a precursor canton for blockchain and cryptographic technologies and as a global hub for cybersecurity • Canton of Vaud provides for various options and profound experience in supporting financing of startups • Location promotion and community building through • Regular events • Monthly meetups • Special events on specific topics on demand • Location promotion and community building / Local key contact / Active interface to local authority and media • Awareness workshops (for companies and organisations to update their management and/or employees on latest trends in blockchain and crypto field)  For contact details and further info please reach out to chapter head (see contact details)

15 «Greater Zurich Area acts as a mediator between international Greater Zurich Area companies and entrepreneurs looking to settle in the area and • International contact local interests and requirements.» partner for promotion and marketing of Zurich economic region • Service-oriented competency center with a clear focus on international companies that can offer high and especially sustainable value for the Zurich economic region

16 Lucerne Business «The highly attractive business friendly environment provides companies with best possible • Located in the heart of Switzerland with superbly developed conditions for their transportation system and best competitiveness.» connections to neighboring cities or airport • lowest corporate taxes in Switzerland and moderately personal income tax rates • Hub of an innovative, internationally- focused and prosperous economic region • Companies in the area count on political stability, high level of security and high quality of life • Pool of well educated, multilingual and loyal employees

17 Contact Information

Cryptovalley Association: Greater Zurich Area: Lucerne Business:

www.cryptovalley.swiss www.greaterzuricharea.com www.lucerne-business.ch

@thecryptovalley @GreaterZurich

Crypto Valley Association Greater ZurichArea Wirtschaftsförderung Luzern

18 Contact Information Regional Chapters

The Southern Alps Chapter: The Romadie Chapter:

t.me/cva_southern_alps cryptovalley.swiss/partners/romandie-chapter

[email protected] [email protected]

19 Appendices

20 Crypto Valley Service Providers

Lakeside Partners Early stage investors with focus on the blockchain industry

Lakeside Crypto Lab Blockchain based co-working space in the city of Zug / incubator / accelerator

Lucerne University of Institute of Financial Services Zug IFZ and Department Applied Sciences and Information Technology Research, education, studies and Arts blockchain use cases

MME Legal services, incorporation, foundations, ICO advisory

21 Crypto Valley Service Providers (cont’d)

PwC Swiss & international tax-, legal-, regulatory ICO advisor, auditor for crypto custody of tokenized assets, internal controls report, corporate finance services, commercial due diligence and advisory, accounting, payroll, immigration, recruiting support

Zuger Kantonalbank Local bank offering banking-, advisory-, investment- and wealth management services to corporates and entrepreneurs

22 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

23 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 24 Selected Crypto / Blockchain Companies (cont’d)

Ethereum Blockchain, p2p contracts, 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

Gnosis Platform for prediction market applications, ZG

25 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° services, ZH

Tezos Self-amending cryptographic 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

26 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

Status Messaging Platform, ZG

The DAO Venture Capital Global blockchain ecosystem for food and agriculture FoodCoin businesses, LU TokenPay Merchant tools and technology, LU

27 Selected Crypto / Blockchain Companies (cont’d)

Lamassu A new generation of cryptomats, LU

Neurodata Lab Emotion and social behavior recognition technologies, LU

28 Labs engaged in Blockchain Computational Social Science Research focus on social coordination, crime and conflict as well as collective opinion formation and the wisdom of crowds

System Security Group Research in the design and analysis of security protocols for wired and wireless networks and systems

Information Security and Research on information security, cryptography and information theory Cryptography Research Group, ETH Zurich

Distributed Computing Current research on distributed computing, distributed systems (Bitcoin), wireline networks (software defined networks)

Networked Systems Research projects using the design principles of software-designed networkings (SDN) on mobile networks and internet routing

Validity Labs & Summer Workshops covering blockchain technology for managers, software Blockchain developers and lawyers (in collaboration with ETH

Blockchain & Smart Contracts Research on distributed storage of data and Smart Contracts in peer-to- 29 peer networks Selected Incubators / Accelerators

Crypto Valley Labs, ZG Thomson Reuters Incubator, ZG

F10 Incubator, ZH Venturelab

Fintech Fusion, GE Venture Kick

Impact HUB, ZH

NexusSquared, ZH

Swiss Startup Factory, ZH

Technopark Lucerne

30 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 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.

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«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.

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