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Switzerland established itself as one of the most cryptocurrency-friendly nations in the world by being one of the first European nations to adopt a more progressive and positive stance toward cryptocurrencies. Switzerland places a strong emphasis on ensuring the security of financial markets because its banking and financial systems are renowned for being excellent at holding onto old money and protecting client confidentiality. And since cryptocurrencies have made such a strong start in dominating the online market, Switzerland has made great strides in ensuring that its citizens and their assets are well protected.
The main body in charge of overseeing cryptocurrencies is the Swiss Financial Market Supervisory Authority (FINMA). As long as they obtain a license from FINMA, they permit the legalization of cryptocurrency assets and cryptocurrency exchange operations in the nation. In addition, since the Swiss Federal Tax Administration (STFA) classifies cryptocurrencies as assets or properties, they must be declared on yearly tax returns in Switzerland as well as subject to wealth, income, and capital gains taxes.
Switzerland, which has a positive attitude toward cryptocurrencies and is home to many companies and regulations related to the industry, has designated its Zug’s Canton as a “Crypto Valley”- one of the world’s biggest blockchains, with regard to the country’s market. Additionally, a number of Swiss cities have started integrating cryptocurrency-based payment systems into their local economies in an effort to promote green financing and forge a progressive future for this sector.
In other words, the cryptocurrency market in Switzerland is as vibrant and active as ever, piquing the interest of and luring many into wanting to participate in such a progressive economy. Here are the rules, a buying guide for cryptocurrencies, and all the information you need to get started as a cryptocurrency investor in Switzerland to assist you with that.
Top Crypto Exchanges in Switzerland
Is Bitcoin Allowed in Switzerland?
As long as they are acquired legally and under license, are not used for unlawful purposes, and the cryptocurrency investors agree to the rules established for crypto assets and the associated sectors, cryptocurrencies are completely legal in Switzerland. However, the Swiss Government expects that everyone will be very aware of and concerned about cryptocurrencies because of the numerous instances of financial and securities fraud.
Furthermore, it’s critical to clarify that despite Switzerland’s welcoming attitude toward cryptocurrencies, these assets are not recognized as legal tender or treated as a form of currency. Nevertheless, some companies today accept the use of cryptocurrencies for payment. The Swiss National Bank (SNB), the nation’s central bank, is aware of the potential applications for digital tokens, and it will continue to keep a close eye on the corresponding market and technological advancements in the future.
As was already mentioned in the article, FINMA is in charge of regulating the cryptocurrency industry in the nation;
- they make sure that all businesses are licensed and regularly audited to protect the finances of their citizens.
- Additionally, they were the first to realize how blockchain and distributed ledger technology (DLT) could enhance the nation’s financial services sector.
The consumer must first and foremost be aware of their obligations as a crypto investor among the many regulatory protocols the Swiss government has imposed on the cryptocurrency market. The STFA states that value-added, wealth, income, and corporate taxes apply to investments in cryptocurrencies. To follow STFA’s guidelines regarding crypto-investing, that must be done in addition to the annual reports of crypto earnings.
The Swiss government has made it abundantly clear that, while prioritizing citizen safety, they seek to be progressive toward the crypto industry. Now that that has been said, let’s look at how to buy cryptocurrencies like Bitcoin in Switzerland.
How to Purchase Bitcoin in Switzerland
One of the methods of purchasing Bitcoin is by using Bitcoin ATMs, which are automated teller machines, you can deposit and withdraw Bitcoin (BTC) and other well-known cryptocurrencies. These devices function in the same way as a typical ATM. Prepare your cryptocurrency wallet and head to one of the many locations in Switzerland with specialized ATMs to buy cryptocurrency with a Bitcoin ATM. Then follow these instructions:
Present a valid ID to prove your identity.
Use the machine's camera to scan the QR code on your crypto wallet. This could be a Bitcoin public address from your paper wallet, an app, or an address from any cryptocurrency exchange you own.
Fill the machine with fiat money or cash.
Confirm the transaction and its monetary value.
Expect to see the specified amount of Bitcoin (BTC) or cryptocurrency in your cryptocurrency wallet.
Crypto exchanges are yet another excellent option for purchasing cryptocurrencies such as Bitcoin. Crypto exchanges are far more user-friendly than Bitcoin ATMs, offer more options, and are far safer. Before you begin, select a cryptocurrency exchange that meets your requirements. There are several cryptocurrency exchanges in Switzerland, but the most popular among current cryptocurrency investors are Bitstamp, Coinbase, and eToro. Once you’ve chosen your exchange, carry out the following:
For account registration and account verification, go to the cryptocurrency exchange website. You might need to provide a legitimate ID card and some personal information. Once done, you should have access to the crypto services the exchange provides.
Use the machine's camera to scan the QR code on your crypto wallet. This could be a Bitcoin public address from your paper wallet, an app, or an address from any cryptocurrency eYou can fund your cryptocurrency exchange account with fiat currency or connect a bank account, an e-wallet, or a debit card. This will serve as a way to pay for any crypto purchases you’ll make in your account. xchange you own.
Search the market for the cryptocurrency you want to purchase, such as Bitcoin (BTC). Select it and click Buy.
Provide all relevant information, such as the cost of the purchase and the method of payment. Review and confirm the transaction. Then you’re done.
Swiss Banks and Bitcoin
Since the country has begun to regulate and gradually integrate cryptocurrencies, banks all over the country have started applying for FINMA licenses in order to participate in this well-known and rapidly expanding sector.
The FINMA granted licenses to Maerika Baumann and Incore Bank in 2019 in an effort to support and expand the larger blockchain infrastructure.
- Both of these financial institutions provide a wide range of services related to digital assets and engage in cryptocurrency trading and custody operations.
- The financial economy of Switzerland has entered a brand-new era thanks to this momentous action.
- Additionally, these banks have been supporting their clients’ security token offerings (STOs) and initial coin offerings (ICOs).
- With the officialization of the Blockchain Act in 2020, these efforts will be further raised.
And today, the majority of Swiss banks participate in the cryptocurrency market to some extent, ranging from being partners with crypto firms to operating as full-time crypto banks like SEBA.
In addition, there are over 900 blockchain and cryptocurrency businesses located all over Switzerland. These cryptocurrency businesses provide private and institutional clients with a range of cryptocurrency services, including trading, prime brokerage, custody, lending, staking, and more. Ethereum, Tezos, Solana, and Bitcoin Suisse are notable businesses and blockchains.
Best Bitcoin Wallets for Swiss Customers
When purchasing digital assets like Bitcoin and keeping the money in a secure location, it might be necessary to use a crypto wallet. It is strongly advised to use more secure asset protection, preferably a hardware wallet. These are some of the best Bitcoin and cryptocurrency wallets currently on the market.
- Coinbase is the best and most user-friendly cryptocurrency and NFT wallet available for mobile devices (iOS and Android). Using the app, it is simple and inexpensive to buy, sell, and take custody of your own property. There are also almost no maintenance costs involved.
- The $150 Ledger Nano X is one of the most advanced hardware wallets available right now. The highest level of security is provided in addition to supporting a sizable number of cryptocurrencies, including Bitcoin. You can easily manage your wallet by merely plugging it into your computer via a USB connection.