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Swiss Bitcoin Startups Call For Regulation and Transparency

Swiss Bitcoin Startups Call For Regulation and Transparency

Swiss Bitcoin Startups Call For Regulation and Transparency

According to Oliver Bussmann, the president of Crypto Valley, a Bitcoin trade group based in the Swiss city of Zug, the demand for Bitcoin and the cryptocurrency market from casual traders and large-scale investors is increasing at an exponential rate, and in order to facilitate such rapid pace of growth, Bussmann stated that the Swiss government must introduce a practical regulatory framework for businesses, investors, and users.

Over the past two years, Switzerland has evolved into a leading Bitcoin and cryptocurrency market in terms of developer activity and startup ecosystem. Already, some of the largest companies and trading platforms within the global cryptocurrency sector such as ShapeShift have relocated to the country, and the city of Zug encompasses more than 20 Bitcoin asset managers. Zug is also the home to the Ethereum Foundation, an organization which oversees the open-source development of Ethereum, the second largest blockchain network with a $28 billion market cap.

Through startups like Bitcoin Suisse AG, Zug has become an important region for Bitcoin and cryptocurrency investment in Europe. Two years ago, Bitcoin Suisse recorded a $13 million annual trading volume. Currently, Bitcoin Suisse is handling $300 million worth of Bitcoin trades on a monthly basis, while operating as a regulated financial broker for crypto-assets. It has played a vital role in the success of some of the largest initial coin offerings (ICOs) to date, such as Tezos.

But, despite the active Bitcoin startup ecosystem and rapidly growing demand for cryptocurrencies, Crypto Valley president Bussmann emphasized that without government regulations and clarified policies on Bitcoin trading, cryptocurrency investment, and ICOs, the Swiss Bitcoin and cryptocurrency industries will struggle to sustain their current growth rates.

Hugo Miller, the Geneva-based journalist, wrote:

“Oliver Bussmann, president of Crypto Valley, a Zug trade group that uses a nickname for the town, has been vocal about the need for regulation. The Swiss cryptocurrency industry will work with money only where there’s a clear record of who is moving traditional currency to cryptocurrency, he says. In other words, Switzerland can’t go back to letting people bury their financial secrets.”

Bussmann further explained the need for full transparency in regards to regulations and policies, to ensure the legality of cryptocurrency startups and protect investors in the region.

“It has to be extremely transparent so that we don’t see another black hole like what happened a decade or two decades ago,” said Bussmann.

In Asia, several countries such as Japan and South Korea, the world’s first and third largest Bitcoin exchange markets, are working toward providing an efficient ecosystem and transparent regulatory framework for businesses. Earlier this year, the Japanese government authorized 11 cryptocurrency exchanges including Bitflyer, the cryptocurrency trading platform with over 800,000 active users that has been collaborating with some of the country’s largest corporations to process Bitcoin transactions.

Bussman and the rest of the Zug Bitcoin community strongly believe that minimal regulations must be set in place for the benefit of investors, businesses, and also regulators.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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