Bitcoin Suisse opts for Zug rather than Liechtenstein

With much publicity surrounding Facebook looking to set up its own digital currency, Libra, and in Geneva, crypto-currencies have been coming increasingly under scrutiny, President Trump expressing his concern about them, describing them as “highly volatile and based on thin air” as he fears the dollar will come under threat. Just as the Libra Association is looking to acquire a licence from the Swiss Financial Market Supervisory Authority (Finma), the Zug-based Bitcoin Suisse company has also applied for bank licence.

In so doing, Bitcoin Suisse is following in the steps of the Zurich-based start-up Sygnum company, the Geneva-based Mt Pelerin and the Zug-based Seba Crypto companies, each of which sought such licences from Finma last year.

Bitcoin Suisse was set up as a crypto- currency exchange by Niklas Nikolajsen almost six years ago, though now the company offers a range of financial services in the crypto-currency area. While the company had a payroll of just 20 at the end of 2017, it now employs more than 90 and, here in Zug, Nikolajsen, along with Vitalik Buterin, the co-founder of ether are regarded as pioneers in their field. Indeed the pair were instrumental in setting up what has become known as Crypto Valley in the canton.

Of note is that, back in 2018, Bitcoin Suisse was looking to set up its headquarters in Liechtenstein as the principality appeared to be more crypto-currency-friendly at that time. However, as of Wednesday, the company has announced it is now definitely staying in Zug.

Having recorded a turnover as high as CHF44 million and profits as high as CHF25 million in 2018, Bitcoin Suisse is now looking to further growth. It has already deposited CHF 45 million in a Swiss bank as surety and this is expected to rise to CHF 55 million.

However, it seems the company will have to be patient in its wait for a bank licence. Seba Crypto is not expecting to acquire its licence until later this year. It is thought Finma may grant such licences to those who have applied for them at the same time so that none is disadvantaged at the launch of such business.