The Swiss Canton of Zug will now start accepting tax payments made in crypto especially in Bitcoin and Ethereum as we are reading more in today’s bitcoin news.
The Swiss Canton of Zug is partnering with the crypto broker Bitcoin Suisse and the development comes only a month after another Swiss canton started accepting taxes paid in crypto. The citizens of Zug can now pay their taxes using Bitcoin and Ethereum according to a press release. The crypto valley is now a home of hundreds of crypto trading firms, exchanges and banks, and even the Ethereum Foundation which is a non-profit entity that oversees the Ethereum network. The canton said in a statement:
“Tax settlement by means of cryptocurrency will be available to both companies and private individuals up to an amount of 100,000 Swiss francs ($109,670).”
We are honored to support the Canton of Zug as it becomes the first Swiss canton to accept #Bitcoin and #Ether as means of payment for cantonal taxes. #bitcoinsuissehttps://t.co/tt2Z2Lm4SA
— Bitcoin Suisse (@BitcoinSuisse_) September 3, 2020
To make this possible, the region partnered with the Zug-based broker Bitcoin Suisse AG which will convert Bitcoin or Ethereum into Swiss francs and then transfer the amount to the state. Bitcoin Suisse founder Niklas Nikolajsen explained that the crypto market grew too big to be ignored and that he sees a lot more crypto adoption in the traditional quarters:
“Everybody cares about a $0.5 trillion market. There’s almost nothing controversial about trading Bitcoin anymore. It’s completely mainstream. With Bitcoin rallying during the pandemic and experts saying it could even act as an inflation hedge, the industry’s bellwethers might change their minds again.”
The Zug region offers low corporate taxes for all of the companies that accept Bitcoin payments for certain government services since 2016 making it a very attractive destination for crypto entrepreneurs. Crypto’s not all that it is doing, however. Zug held the first blockchain-based municipal ballot in 2018 and piloted a digital identity project using the technology in 2019.
Basically, the ‘Crypto Valley’ is a region stretched across 30 kilometers from Zurich to Zug. It boasts progressive laws, a competitive hiring environment, and substantially low taxes. From all this, it is clear why it attracted so many startups in the blockchain world and how investors and entrepreneurs heard about it amid an uncertain international legal climate. The density of blockchain projects is still far from being compared to Silicon Valley. However, some of the most prominent names include the Ethereum Foundation, Shapeshift and Xapo. There are more names popping in Zug, Switzerland as we speak – and building the utopia for blockchain businesses.
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