Swiss Officials Fear ICOs Will Tarnish Reputation of 'Crypto Valley' Zug
Cryptocurrency foundations, community organizations, and entrepreneurs have helped put the lightly populated Swiss canton of Zug on the business world’s map. While the local administration has created one of the most welcoming environments for the industry, some voices fear possible negative repercussions such as bad press and an American regulatory backlash.
Lamborghini Robin Hoods
Besides flashy displays of wealth, critics also echo other familiar complaints. 'My big worry is that the whole intransparency will lower Zug's standing worldwide,' said Andreas Hьrlimann, a local Green party councillor. 'You don't know from where to where the money is flowing, whether it is drug money for instance.' He also added that the council accepting bitcoin payments was 'clearly a marketing gag'.
For their part, the entrepreneurs appear to be pleased with the region’s politicians and regulations. The only issue they raised in the FT report was reluctant cooperation by the local banks, something that they can bypass by turning to other places such as Liechtenstein.
'These ICOs require blind trust in the founders. You can't do much if the raised funds are misappropriated,' commented Luzius Meisser, founder of the Bitcoin Association Switzerland. Heinz Tдnnler, Zug canton's finance director, said: 'The risk is when you have 'black sheep'. We have our eyes open. But there is never an opportunity without risks.'
Still others seem to be overwhelmed by the fast development of 'Crypto Valley'. Dolfi Mьller, Zug town council president, said: 'We play the background music'.'.'.'We don't have great plans ' we don't want to be a 'smart city' like Dubai. It's step by step. It's Asterix against Rome.'
Images courtesy of Shutterstock.
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