Tuesday, 3 April 2018

SWI swissinfo.ch/Matthew Allen: Has Switzerland blown its crypto-opportunity?

Front page - SWI swissinfo.ch

Draper blast
Has Switzerland blown its crypto-opportunity?
By Matthew Allen

    Sci & Tech
    Business

...

    Reuse article

This content was published on March 28, 2018 7:57 PMMar 28, 2018 - 19:57
View of Zug

The 'Crypto Valley' of Zug established itself as a leading global hub for ICOs last year
(Keystone)

Legendary United States crypto investor Tim Draper believes Switzerland has missed the boat in establishing itself as an attractive global hub for blockchain start-ups. Draper has invested in Tezos, which ran into a damaging governance row in Switzerland shortly after its initial coin offering (ICO) fundraiser.

Addressing the Crypto ICO summit in Zurich by Skype link, Draperexternal link said Switzerland had put off investors with heavy-handed regulation. “You [Switzerland] had the tiger by the tail, everyone was going to do their ICOs through you, and all you had to do was make it easier for everybody,” he said.

“Instead, the regulatory bodies got in there, they made it tougher, they put more and more barriers up, so people went to Singapore and Gibraltar and Cayman and to other places,” he added.

“Switzerland had an enormous opportunity and I think they have lost their opportunity. If you have heavy regulation, you lose your business. Maybe they can bring it back by being more regulatory light. Governments now have to compete for us. We can move, we can go from country to country.”
‘Shocker’

Draper did not refer to which specific Swiss regulation has put him off. In recent weeks, the Swiss financial regulator recently issued guidelines on how it would deal with tokens generated by ICOs, classifying some as securities.

However, Draper made specific reference to the Tezos row that only calmed down at the end of January. The project was frozen for several months as a public dispute raged between the creators of the Tezos technology and the president of a Swiss-based foundation set up to house and distribute the $232 million (CHF221 million) generated by the crowdfund last summer.

Draper said the situation had been a “shocker” as it unfolded before his eyes. He had particular issues with the way the foundation controls funds and tokens generated by the ICO and the governance relationship between the non-profit foundation and the for-profit entity under such an arrangement.

But Draper still referred to the ICO fundraising craze that raised $4 billion globally last year – CHF850 million in Switzerland – as “one of the greatest moments in the history of the world” that will transform the world in a more profound way than the internet thanks to blockchain technology.
Restaurants and saloons in black and white archive photo
Crypto start-up funds
Swiss ICO market ‘is not a Wild West’
By Matthew Allen

A senior Swiss government official has dismissed fears that a new method of funding for crypto start-ups has mushroomed out of control.
3 There are 3 comments on this article.

    in depth: Fintech Switzerland

    Sci & Tech
    Business

See in other languages: 4




swissinfo.ch
Neuer Inhalt

Horizontal Line
subscription form

Form for signing up for free newsletter.

Sign up for our free newsletters and get the top stories delivered to your inbox.
Email address
Top stories (weekly)
Latest news (daily)
Business (weekly)
Politics (weekly)
Society (weekly)
Fintech (monthly)

Click here to see more newsletters
The citizens' meeting

The citizens' meeting
The citizens' meeting
Comment on this article:

Related Stories
JSA
February 26, 2018
Crypto Nation Switzerland
By Matthew Allen

“In five or ten years’ time I don’t want people to be talking about Crypto Valley Zug. I want people to be talking about Crypto Nation ...
Fintech Switzerland
March 19, 2018
Mapping out Fintech/Blockchain Switzerland
By Matthew Allen

Switzerland has made impressive strides towards accommodating innovation - both domestic and foreign - in the fields of fintech, blockchain and ...
A pile of bitcoins
Bitmain Technologies
Chinese bitcoin mining giant sets up Swiss hub
By Matthew Allen

One of the world’s largest bitcoin miners is setting up a hub for European operations in Switzerland, a person familiar with company has confirmed ...

    in depth: Fintech Switzerland

    Sci & Tech
    Business

See in other languages: 2
A man's hand holding a 25 Bitcoin token
Bitcoins
Regulation on ICOs inconsistent as crypto bubble fears grow
By Caroline Binham in London, with additional reporting by Chloe Cornish in San Francisco and Roger Blitz in London

When celebrities known more for reality shows than financial prowess endorse an investment strategy, it is fair to assume a bubble exists.

    in depth: Fintech Switzerland

    Business
    Sci & Tech

See in another language: 1
Footer

    Weather RSS

    The company | Partnerships | Imprint | Jobs | Play SWI | Newsletter subscription | Contact

Back to top
World partners:

    Radio Netherlands Worldwide | Radio Canada International | Radio Praha | Polskie Radio

    RTS | SRF | RSI | RTR | SWI

Front page - SWI swissinfo.ch
swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

    Front Page
    Latest News
    Direct democracy
    Politics
    Foreign Affairs
    Business
    Culture
    Society
    Sci & Tech
    Multimedia
    In Depth
    Special reports
    Switzerland: How To

Follow us:

    en
    English
    de
    Deutsch
    fr
    Français
    it
    Italiano
    es
    Español
    pt
    Português
    ja
    日本語
    ar
    عربي
    zh
    中文
    ru
    Pусский

Follow us:
× Close

Function    Example    Search result
Search for exact term    "money-laundering", "Roger Federer"    Results include exact spellings of "money-laundering" and "Roger Federer"
Search for all terms    Roger Federer    Results include "Roger" and "Federer"
Either-or search    money-laundering    Results include "money" or "laundering"
Search for one term and not the other    money -laundering    Results include "money" but NOT "laundering"
Search for word stem    sun*    Results include words with the same base like "sun", "suns", "sunshine", "sunny"
Search with placeholder for letter    wom*n    Results include all possible words: "woman", "women"
× Close
Copyright

All rights reserved. The content of the website by swissinfo.ch is copyrighted. It is intended for private use only. Any other use of the website content beyond the use stipulated above, particularly the distribution, modification, transmission, storage and copying requires prior written consent of swissinfo.ch. Should you be interested in any such use of the website content, please contact us via contact@swissinfo.ch.

As regards the use for private purposes, it is only permitted to use a hyperlink to specific content, and to place it on your own website or a website of third parties. The swissinfo.ch website content may only be embedded in an ad-free environment without any modifications. Specifically applying to all software, folders, data and their content provided for download by the swissinfo.ch website, a basic, non-exclusive and non-transferable license is granted that is restricted to the one-time downloading and saving of said data on private devices. All other rights remain the property of swissinfo.ch. In particular, any sale or commercial use of these data is prohibited.
   
Has Switzerland blown its crypto-opportunity?
Matthew Allen
Mar 28, 2018 - 19:57

Legendary United States crypto investor Tim Draper believes Switzerland has missed the boat in establishing itself as an attractive global hub for blockchain start-ups. Draper has invested in Tezos, which ran into a damaging governance row in Switzerland shortly after its initial coin offering (ICO) fundraiser.

Addressing the Crypto ICO summit in Zurich by Skype link, Draper said Switzerland had put off investors with heavy-handed regulation. “You [Switzerland] had the tiger by the tail, everyone was going to do their ICOs through you, and all you had to do was make it easier for everybody,” he said.

“Instead, the regulatory bodies got in there, they made it tougher, they put more and more barriers up, so people went to Singapore and Gibraltar and Cayman and to other places,” he added.

“Switzerland had an enormous opportunity and I think they have lost their opportunity. If you have heavy regulation, you lose your business. Maybe they can bring it back by being more regulatory light. Governments now have to compete for us. We can move, we can go from country to country.”

‘Shocker’

Draper did not refer to which specific Swiss regulation has put him off. In recent weeks, the Swiss financial regulator recently issued guidelines on how it would deal with tokens generated by ICOs, classifying some as securities.

However, Draper made specific reference to the Tezos row that only calmed down at the end of January. The project was frozen for several months as a public dispute raged between the creators of the Tezos technology and the president of a Swiss-based foundation set up to house and distribute the $232 million (CHF221 million) generated by the crowdfund last summer.

Draper said the situation had been a “shocker” as it unfolded before his eyes. He had particular issues with the way the foundation controls funds and tokens generated by the ICO and the governance relationship between the non-profit foundation and the for-profit entity under such an arrangement.

But Draper still referred to the ICO fundraising craze that raised $4 billion globally last year – CHF850 million in Switzerland – as “one of the greatest moments in the history of the world” that will transform the world in a more profound way than the internet thanks to blockchain technology.








× Close
RSS

    Top News
    Latest News
    Politics
    Foreign Affairs
    Business
    Sci & Tech
    Culture
    Multimedia
    Podcasts
    The Swiss community around the globe
    Direct Democracy

No comments: