For centuries Switzerland was known around the world for its tradition of banking secrecy, but now a new financial industry is taking root in the country. Local leaders tried to establish a cryptocurrency hub, and their latest catch is Chinese bitcoin mining giant Bitmain, which expanded to a new location in the picturesque Swiss canton of Zug.
Bitmain Technologies Ltd., the Beijing-headquartered bitcoin mining machines (ASIC chips) producer, has established a new branch in Zug, Switzerland. The Chinese company explained it chose the Zug location because Switzerland was “one of the most progressive countries”, “with good legal stability” and a skilled workforce. Bitmain says it will employ more employees in Zug in the future and will “actively communicate with self-regulatory organizations (SROs) and the Financial Market Authority (Finma).”
“Bitmain Switzerland will play a key role in our global expansion,” the company’s spokesperson told the German-language Swiss newspaper Handelszeitung. This is the first foothold in Europe for Bitmain which already has branches in the US, Singapore and Israel. “Now is a good time to build a hub in Europe to provide better services,” he proclaimed.
Chinese Global Diversification
Encouraged by the government to expand internationally, many Chinese corporations have established new businesses in markets all over the world in recent years. The Chinese bitcoin mining industry, however, might also be motivated to grow beyond their homeland by fear of a possible clampdown.
There are conflicting reports about the position of the Chinese government with regard to such a move against bitcoin mining, and it’s always wise not to keep all your eggs in one basket, just in case. Switzerland, among other countries, looks poised to benefit from offering a welcoming environment for anyone looking to expand to a more secure location.
Is this a signal for things to come in the Chinese bitcoin industry? Tell us what you think in the comments section below.
Images courtesy of Shutterstock.
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Author: Avi Mizrahi