A survey done by the CV VC a Swiss crypto investment firm clearly shows Switzerland and Liechtenstein blockchain industry grew significantly despite the bear market trend in the industry. The bear market trend is dubbed as crypto winter.
Per data from the survey by December of last year 750 firms running distributed ledger platforms had set up offices in the two countries. Among the new blockchain entities that entered the industry include Ethereum, Dfinity Foundation, Cardano and lastly Bitmain. The latter are among the firms in the blockchain sector that are the driving force of the industry. Furthermore, they are among the companies that form the crypto valley which makes up a fifth of the whole digital coins market according to CV VC data. Moreover, according to CV VC, the 750 companies that entered the market last year make 20 percent which equates to 121 companies setting up their business in the countries.
Bear Market Led to Sharp Drop in Market Value
Further on according to data from the survey the crypto winter trend also led to some significant losses with 50 well-established blockchain firms market value dropping to $20 billion from $44 billion. The sharp drop was experienced in the first quarter of 2018 and represents a 55 percent decrease. Despite the decline in market value, the blockchain industry is still helping in the growth of the economy by providing employment. For instance, 3,300 people have jobs in Zurich and Zug region due to the industry.
But for the above firms to choose setting up their offices in Liechtenstein and Switzerland local authorities must come up with rules for the sector. It’s in 2018 that Liechtenstein came up with new regulations to regulate business operators present in Liechtenstein. Prime Minister Adrian Hasler announced the new laws. Through the 2018 laws customers and business operators in the sector now have clear cut lines that help them operate legally and within the law while running their blockchain based businesses. But on the Swiss side, their Finance minister rejected a proposal to draft new regulations specifically for regulating the blockchain sector. In his view, the present laws can be reevaluated to provide guidelines for both the crypto and blockchain industry in Switzerland. And in 2019 the government will tweak six laws in total to help regulate players in the emerging market. The changes to be made will cover the bankruptcy and civil code law.