Many countries want to participate in the boom of the crypto sector. Often, however, they go too slowly. In particular, the regulatory issue remains problematic. That’s why many development companies prefer locations like Israel.
The country has now become one of the leading international markets. The competition is great, and in Europe there are also some countries like Switzerland or the small state of Liechtenstein, who want to secure a piece of the pie.
Tel Aviv as a global crypto site
The decision to favor Israel as the right place for businesses in the Bitcoin and Co. County is mostly based on the country’s gradual turning into an IT melting pot. Of the 7,000 start-ups around the city of Tel Aviv, 500 can be attributed to the blockchain context.
The settlement of branches of many big names of the banking and insurance landscape also attracts financial service providers. Another important factor in the emergence of the Israeli crypto scene is the willingness of the government of Israel to invest large sums in the technological optimization of the military.
Likewise, the Israeli tax system favors investors. Risk capital procurement is also easier than in many other countries. Last but not least, almost every resident in the country has at least one mobile device. Digital innovations are thus finding fertile ground.
Liechtenstein surprised with a legal push
Meanwhile, Liechtenstein has landed a comparatively large legal throw in the competition for the favor of crypto companies and investors. A new law brings clear legal framework. Digital IPOs and the tax situation are now regulated by law.
For the Principality, this could lead to massive growth of new companies in the coming years. The Alpine republic of Switzerland or the canton of Zug had previously attracted attention with clear measures for regulation and tax details. Meanwhile, the region has the reputation of being a kind of Silicon Valley of the Swiss cryptosector.
Austria, Germany and other states want to catch up
Other European countries, such as Austria, also wants to create understandable legal provisions in order to prevent fraud and ensure transparency. In Germany, the crypto topic has finally made it into the coalition agreement of the federal government, Berlin and Munich are gradually top addresses for start-ups in the field of crypto currencies, although the legal situation in the opinion of many industry experts is not well developed – neither for tax purposes nor for the guidelines for ICOs and other important aspects.