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The Crypto Landscape: Setting Up in Gibraltar and Switzerland

As the world of cryptocurrency continues to evolve, businesses and individuals seeking a stable and secure environment for their crypto operations often turn to jurisdictions that offer favorable regulatory frameworks. Gibraltar and Switzerland have emerged as prominent players in this space, each offering unique advantages for those looking to establish a foothold in the crypto industry.

Establishing a company centered on cryptocurrency can be daunting. At ERG, we assist various businesses utilizing Distributed Ledger Technology (DLT) structures in setting up in Gibraltar and Switzerland, saving you valuable time and money.

Gibraltar

Gibraltar emerges as an attractive hub for crypto businesses, boasting low tax rates, no taxes on dividends, and a corporate tax rate of just 12.5%. This makes the territory especially alluring for cryptocurrency projects.

Furthermore, Gibraltar has established a robust regulatory environment, exemplified by the implementation of the DLT Regulatory Framework. This framework outlines the specific requirements for businesses operating in the blockchain and crypto sector.

Navigating the complexities of obtaining a license in Gibraltar can be challenging, but ERG is here to help. We guide businesses through the application process and ensure compliance with DLT principles. These principles encompass honesty, risk management, governance, client communication, financial resources, resilience, and cybersecurity, all designed to safeguard customers involved in cryptocurrency transactions.

More detail on these principles and the expectations of the Gibraltar Financial Services Commission are set out in the DLT Guidance Notes issued by them which can be viewed at: www.gfsc.gi/dlt

To apply for a DLT Provider Licence from the GFSC, you'll need to submit a thorough business plan and various policy documents outlining how you intend to comply with the Nine DLT Regulatory Principles. Our team is equipped to aid you in this application process.

Switzerland

Alternatively, Switzerland stands out as a favored European destination for crypto businesses. If you seek a transparent regulatory framework, a vibrant crypto community, and a favorable tax regime for your licensed crypto business, Switzerland could be an excellent choice.

Swiss Financial Market Supervisory Authority (FINMA) regulates cryptocurrency and blockchain projects, issuing guidelines to ensure compliance with relevant laws.

To establish a cryptocurrency company in Switzerland, adherence to Company Law is essential, with the stock corporation (AG) being the preferred choice due to FINMA's share capital requirement. Other key requirements include:

  • Minimum authorized share capital of 100,000 CHF.
  • Licensing in compliance with Anti-Money Laundering Regulations, necessitating a Switzerland crypto license.
  • Appointment of at least one Swiss resident director.

While a private limited liability company (GmbH) is an alternative, it operates outside FINMA's regulations, eliminating the need for a crypto exchange license in Switzerland. For foreign investors or entrepreneurs venturing into cryptocurrency businesses, ERG consultants can ensure compliance with these prerequisites.


Why Eastern Region Group?

We offer expert legal support for those looking to launch a cryptocurrency business in Gibraltar or Switzerland. Our team assists with the entire registration and licensing process, providing comprehensive services such as:

  • Guidance in assembling the required document package.
  • Advice on creating a business plan, understanding local legislation, taxation, and reporting.
  • Support in opening a bank account, among other services.

Our experts will offer recommendations and instructions on addressing these matters and more. Seize the opportunity to launch your cryptocurrency business with ease and comfort – reach out to us today at +971 56 901 5507.

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