Many cities and regions have managed to encourage investments and economic activities within them. This is the case of Zug, a canton in Switzerland that now accepts the payment of taxes using crypto currencies.
Zug is home to hedge funds, encryption companies and commodity traders. In addition, it will now begin to allow citizens to pay taxes on Bitcoin and Ether as the acceptance of cryptomonies continues to grow.
Switzerland maintains the same legislation in the Blockchain
Swiss steps for the adoption of crypto-currencies
This region is collaborating with the Bitcoin Suisse AG broker, which converts the crypto currencies into francs and transfers the amount to the state.
Zug has been accepting Bitcoin payments for certain government services since 2016. It also inspired the Zermatt ski resort to do the same.
However, the highlight is that tax settlement using crypto-currency will now be available to both businesses and individuals. The maximum amount to be paid is 100,000 Swiss francs ($109,670).
It is not surprising that this is generated precisely in Switzerland, considering that in general they have a favorable regulation for the development of the crypto industry. Obviously, there is still a long way to go, but the start has been quite solid not only in Zug, but in Switzerland in general.
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What other steps remain to be taken in the acceptance of everything related to the crypto world?
Even though the environment is favorable, banks do not yet openly offer blockchain services. This is due to the risks involved in the volatility of many common crypt currencies.
However, as revealed by Bitcoin Switzerland’s president, Niklas Nikolajsen, in an interview with Bloomberg, with Bitcoin’s surge during the pandemic this could change the perception. For example, for some it could even act as an inflation hedge.
Bitcoin Suisse’s revenue was CHF 20.9 million last year with a profit of CHF 2.4 million. This was mainly for services related to the cryptomoney trade.
While the firm also offers its services to banks with clients who want to trade in digital currencies, Bitcoin Switzerland recently applied for Swiss and European banking licenses.
With a European license, Bitcoin Suisse could actively target clients on the continent, where its main focus would be Germany. „Our main customer base is Switzerland, Germany and Scandinavia. But we have a lot more to do in Germany and it can’t be that we have more Swiss clients when there are ten times as many Germans,“ said Nikolajsen.