Much like Kraken itself, Switzerland has a strong commitment to privacy and security when it comes to finances and individual affairs. Yet at the same time, it believes in individual responsibility.
Strict adherence to these principles over centuries has helped Switzerland become the world’s trusted financial center. In the same vein, we used similar principles to become the largest cryptocurrency exchange in Europe and one of the biggest in the world.
Additionally, the country has proven itself to be proactive and forward-looking in terms of regulations over the years. The Swiss Financial Market Supervisory Authority (FINMA) has been proactive in granting licences to banks and other financial institutions that want to service the crypto industry, and the Canton in Zug has become an oasis for crypto firms in Europe.
The end result is more than 800 crypto and blockchain companies call Switzerland home.
A Great Start, but Not Enough
Despite this great progress, many of these crypto companies remain in their embryonic stages and are straining under the harsh financial pressures of COVID-19. According to a recent survey by the Swiss Blockchain Federation, nearly 80% of these companies risk bankruptcy in the next 6 months.
Furthermore, all of this is happening during times of macro volatility, such as this current moment, when crypto is thriving. Consider the following:
- In May Bitcoin’s rolling 30-day correlation with the S&P 500 fell to 0.13 and jumped to 0.50 with respect to gold, thus confirming its status as an alternative store-of-value and an uncorrelated asset with respect to traditional risk-on assets
- Bitcoin has almost fully recovered its losses from the broad market selloff, while leading indices such as the Euro Stoxx 50 or Stoxx 600 are far behind. Please see the chart below, which compares Bitcoin against these two indices.
Don’t forget, Bitcoin’s pseudonymous founder Satoshi Nakamoto invented Bitcoin 10 years ago during the height of the Great Recession. He wanted to free people from the fiat monetary system that failed them so many times.
Given these circumstances, it makes perfect sense for us to deepen our engagement with the country, especially now as the industry continues to mature and our exchange is expanding its products and services for clients throughout Europe.
Building the Foundation
Therefore, we are pleased to highlight some recent activities that deepen Kraken’s engagement with the Alpine state.
We began with supporting the CHF, which began in December 2019, making it our 6th fiat currency.
Additionally, we are now officially a member of the Crypto Valley Association, the leading Switzerland-based advocate for the advancement of Bitcoin and cryptocurrencies.
A Lot to Look Forward To
We are excited about collaborating with other key players in Switzerland and our fellow CVA partners to ensure the continued development of crypto in the industry so that everyone can achieve true financial freedom.
For further information/questions or interest to collaborate please contact: firstname.lastname@example.org