Switzerland and Liechtenstein’s crypto projects value surged by 107% year-over-year to $382.93 billion, led by Ethereum, amidst broader market recovery and innovation.
According to a report by Swiss venture capital firm Crypto Valley (CV VC), the value of cryptocurrency projects based in Switzerland and Liechtenstein has experienced a significant year-over-year increase of 107%, reaching $382.93 billion.
Ethereum, operated by the Ethereum Foundation, is currently the highest-valued project in these countries, boasting a market capitalization of $273 billion. Solana follows at $43.3 billion, and Cardano at $20.8 billion. The surge in valuation is attributed to the broader recovery of the cryptocurrency market.
Despite the resurgence in the token market, the global venture capital funding landscape for Web3 has not fully recovered. CV VC researchers compiled data indicating 1,031 venture capital funding transactions worth $9.8 billion for Web3 companies globally, representing declines of 55% and 69%, respectively, compared to the corresponding figures in 2022.
In 2023, cryptocurrency firms in Switzerland and Liechtenstein completed 49 transactions totaling $283.5 million, a decrease from 93 transactions in 2022 that raised $964.3 million. The two countries account for about 5% of all Web3 venture capital funding and are home to 1,290 Web3 firms, including prominent organizations such as Polkadot, Solana, Internet Computer, Near, and Cosmos.
Switzerland and Liechtenstein Continue to Thrive as Crypto Hubs, Hosting Over 1,290 Crypto Entities
In 2019, Liechtenstein became one of the first countries in the world to adopt specific legislation on crypto and blockchain, namely the Token and Trusted Technology Service Providers Act (also known as TVTG or the Liechtenstein Blockchain Act), which has been in force since the beginning of 2020 and established one of the world’s first regulated environments for token-related services.
The Swiss crypto ecosystem has rapidly evolved, with many local banks introducing cryptocurrency services. In September 2023, a licensed Swiss bank, Dukascopy Bank, officially launched its crypto-enabled services, including marginal trading and online retail banking accounts.
After receiving a banking license from the Swiss Financial Market Supervisory Authority in 2019, SEBA has been actively onboarding crypto services to major private and retail banks, including LGT Bank Liechtenstein and Bank Julius Baer.
Since 2020, the number of crypto service providers in Liechtenstein has been increasing as companies find optimal conditions there to establish and develop their crypto businesses. The TVTG’s high level of regulatory certainty and direct communication with the local financial market regulator, the Financial Market Authority (FMA), have also contributed to this crypto-friendly environment.
Mathias Ruch, CEO of CV VC, stated,
“Each of the 1,290 entities here reflects Switzerland’s innovative legacy, fortifying local and global economies. This report is not about the bulls nor the bears, but rather the builders who are delivering trustworthy systems and a better way for the world to both interact and transact.”
Switzerland and its neighboring countries have become significant hubs for blockchain adoption. In December 2023, BBVA Switzerland, the Swiss branch of one of the largest Spanish banks, revealed its adoption of Ripple-owned tech firm Metaco’s Harmonize platform for crypto custody operations with institutional investors.
Additionally, recently, the Swiss city of Lugano announced its acceptance of Bitcoin and Tether for paying municipal taxes.
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