Swiss Crypto Valley Appeals to Government for Financial Support

The Swiss Crypto Valley Association appeals to the government for 100 mln Swiss francs ($ 102.7 million). The flourishing Swiss crypto industry is struggling to survive after private investors leave. About 80% of the 203 firms surveyed by the Swiss Blockchain Federation reported potential bankruptcy. Only half of the 50 largest companies in Crypto Valley are going to continue its crypto business for another year.

The crypto sector is asking the government to create a fund that is expected to use federal guarantees and private investment. The Zug finance director Heinz TAENNLER, noted that the recently announced Swiss government credit of 154 mln francs for startups is not sufficient for the financial needs of the crypto sector, therefore, he calls for the creation of a separate fund for the Zug companies.

In the middle of 2019 the 50 leading companies were analysed and estimated at $ 40 bln. It showed the two times increase of their value at the beginning of the year. The report also listed six unicorns. In total, there were more than 800 companies in Crypto Valley with more than 4,000 employees.

Crypto Valley Association president Daniel HAUDENSHIELD says the sector is already hardened, since banks are ignoring the crypto sector and don’t issue the emergency loans.

Image courtesy of Crypto Access