Will Switzerland benefit from the FTX crypto crash?

Crypto Billionaire
Crypto Billionaire

With the collapse of the first crypto exchange powering FTX, the crypto industry experienced an unprecedented disaster.

The Swiss company is torn between short-term business losses and the prospect of Switzerland emerging from the crisis and becoming a strong global hub for the blockchain industry.

The Bahamas-based FTX Group has recently been hailed as one of the most stable and innovative crypto companies in the world. It combines the world’s second largest cryptocurrency with a profitable investment firm called Alameda Research.

The corporation has now been declared bankrupt in the United States and is being investigated for suspected fraud in several countries.

“In my career, I have never witnessed such a complete break in control of a company and such lack of reliable financial information,”

said the company’s liquidator, who was also involved. Enron’s liquidation, said. the top of the iceberg

Switzerland will certainly feel the main effects of the FTX explosion, but the real damage will be revealed in a few weeks. The industry favors reduced trading volume, venture capital investment, bankruptcy of FTX-related companies, and less risk to cryptocurrencies in the traditional financial sector.

This is probably just the tip of the iceberg,” said Michael Guzik, executive chairman of Credit Suisse’s CLST platform. “The market is losing faith. Even the most seasoned crypto players right now are saying it’s over.”

“It is difficult to gauge how polluted the Swiss crypto space is by FTX,”

said Martin Burgerr, account manager at Sygum Bank.

“We expect this to be severe for the global industry, with other stratification effects yet to be determined.”

Several Swiss crypto companies, including Bitcoin Suisse, Digital Finance, 21Shares, Sygum, and SEBA, have issued statements stating that they are not in danger of bankruptcy by FTX.

Bitcoin Suisse says that “limited” funds have been frozen on the FTX exchange, but it was not enough to significantly affect its finances. Alameda Research, a subsidiary of FTX, has invested in SEBA, but the bank says it has less than a 1% stake and no voting rights.

Fund freeze

Crypto Consulting, which manages crypto-related funds, said investors locked some assets in FTX, but did not specify how or when the assets would be returned.

FTX Group kicked off its operations in Switzerland this year by acquiring a Swiss law firm specializing in cryptocurrencies. The goal is to make Switzerland the headquarters for events in Europe and the Middle East.

The manager responsible for the business has now changed his social media profiles to separate himself from FTX and does not return calls to swissinfo.ch for comment.

But Switzerland, as the world’s “crypto nation,” hopes to benefit in the long-term from FTX’s debacle. The industry may need to move out of the shadow of an obscure seaport into a country with a stronger regulatory tradition.

Casper Institute board member Ralf Kubri told swissinfo.ch: “The appeal of offshore jurisdictions has decreased. Reputation-concerned institutional clients don’t want to do business with companies there.”

Safe escape

“[The FTX crash] gives Switzerland more opportunities to be a safe haven for investors in times of uncertainty,” said Martin Burgerr of Signum.

This month, the bank announced it had invested 345 million Swiss francs ($363 million) in new customer assets to hedge against volatility. By the end of November, this figure will reach 400 million Swiss francs.

Switzerland has transitioned its financial and corporate law to blockchain-based finance, and national regulators have long been accustomed to the nuances of cryptocurrencies.

This prompted another crypto exchange, BitMEX, to consider moving from the Seychelles outside of Switzerland after being prosecuted by US prosecutors.

Regulation is necessary to prevent large-scale and repetitive criminal and malicious activity,” Crypto Finance FTX wrote in a failed report.

Related Posts

best sex of my life

The best sex of my life

Dog collar, subdued and voyeuristic; Two 40-year-old professionals from the UK told me how they got out of their comfort zone and had unrequited sex. Connecting apps…

withdraw Bitcoin BTC

Withdraw 10,000 bitcoins from Wex digital currency exchange wallet (formerly BTC-e)

For the first time since 2017, multiple cryptocurrencies stored in wallets linked to cryptocurrency exchange Wex, the successor to Alexander Vinnik’s popular trading platform suspected of money…

person on dating apps

Online dating: Why more singles are removing apps and choosing real encounters

Tinder online dating app is 10 years old this year. It’s a celebration for any company, but so much more for a company that needs more people…

sex act in a car

Rylan Clark reveals Big Brother’s secrets, including a couple having sex in a car

In the memoir Ten: The Ten Years That Changed My Future, the host revealed the jokes of the Big Brother contestants who had never appeared on the…

webcam for money

How to have sex on a webcam

Free pornographic webcams are becoming more and more popular among young and old. Heh, no wonder, enjoy watching porn or doing live porn shows! One of the…

Tinder messages on plane

Married woman caught with 22 Tinder messages on plane

Some passengers on this plane may be forced to make an emergency landing. An unidentified woman who received 22 Tinder messages on her phone was forced to…