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 «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 Bitcoins, 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 cryptocurrencies (e.g. Bitcoin) 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: • Tezos ($238m) • Bancor ($157m) • The DAO ($142m) • 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.» • Lucerne: 12.32% • 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 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