For a long time now, businesses have not thought about where it is better to store their savings because the answer is obvious – Switzerland. This neutral country has created impeccable conditions for attracting foreign capital. At the same time, the country follows the latest innovations in the world of finance and is very blockchain-friendly. This leads to the fact that obtaining a Switzerland cryptocurrency license today is not difficult. Today, we want to discuss the advantages and disadvantages of such a solution and evaluate how suitable it is for your business.
Table of Contents
Benefits of licensing here
Having received a permit, the organization automatically acquires a wide range of advantages that will benefit the expansion of the crypto business.
Long-term stability in financial market control
It’s no secret that this jurisdiction is reliable and stable worldwide, especially in the financial sector. Consequently, by opening a business in this state, the firm will have a successful start, guaranteeing many years of stability and transparency in crypto activities.
Innovative financial infrastructure
This state has one of the best technical equipment, which allows you to conduct business comfortably: engage in exchange, conduct transactions, and trade crypto assets. Some banks and payment providers have opened their doors to cooperation with crypto organizations: you can open crypto accounts. And over the next two years, more than 50% of banks plan to introduce services related to digital coins into their system.
Prestige of the organization
Having a permit, the firm will automatically occupy a high status among similar companies since this jurisdiction is considered one of the most prestigious in the world. Having received such permission, your firm will be regarded as a reliable and honest partner with a high reputation.
Convenient taxation
You can choose the most appropriate canton for taxation in a given state. The country has three levels of income tax:
- federal – the uniform rate throughout the state is 8.5%;
- cantonal – a single rate within the boundaries of one canton can be in the range of 11.9 – 21%;
- municipal.
Thus, based on taxation, you can choose any canton for your cryptocurrency activities.
Concentration of blockchain firms
The country has a large concentration of influential crypto organizations with high statuses in blockchain. Such a significant community will contribute to the company’s development and cooperation with the most influential organizations in this field.
Active support for fintech firms
An important point is that firms are actively supported at the state level, allowing many issues to be resolved. In addition, the authorities are investing in financial technologies, creating an innovative area for comfortable activities of financial organizations.
Providing different types of trade and services
Having a permit, the company will be able to use a wide range of crypto services, and this helps attract traders. Such compelling advantages cannot but attract investors to obtain a permit here.
Disadvantages of licensing here
Despite the substantial advantages, there are also some disadvantages to licensing in this jurisdiction:
- for licensing, it is necessary to prepare a considerable number of papers drawn up by the requirements;
- the process of opening a firm is quite labor-intensive: registration must be completed with several relevant authorities;
- the presence of rigorous control regarding the AMLA and KYC policies; at the slightest suspicion, the company’s activities will be suspended and subject to thorough inspection;
- significant authorized capital – from 100,000 Swiss francs (approximately 110,000 US dollars).
It cannot be considered a significant disadvantage, but if you plan to be licensed in this state, you should consider these aspects. From all this, it follows that the advantages of the Swiss crypto license are much more significant than the disadvantages, and they are much more pronounced in terms of the impact on the activities of a firm.
Conclusion
This country was the bank of all European countries for a long time. It has an excellent reputation and has proven to value other people’s property. As a result, a huge number of people around the world prefer to obtain a permit in this country. If you want to get more information about the crypto industry regulation here, you can contact gofaizen-sherle’s specialized lawyers.
