June 9, 2020 by Clementine
While the health crisis has benefited the industry of crypto-currencies, after-effects were however observed within companies cryptos based in the department of Zug in Switzerland. The local authorities of Zug, switzerland, have therefore sought the financial assistance of the central government, but this support has been denied to them.
No support for the crypto-sector
In the Face of the shortages in which are immersed the crypto-business of his department, and Heinz Tännler, the chief financial officer of Zug, has requested a budget of 100 million swiss francs (nearly € 93 million) to the swiss government to stay afloat these companies. Unfortunately, the response to this request concluded in the negative.
Nearly 80% of companies operating in the Crypto Valley are currently threatened with closure. What’s more, many equity investors have decided to withdraw their participation due to the economic upheavals of today.
Curiously, about two dozen requests related to the COVID-19, only the application of bail-in of the Crypto Valley has been rejected by the federal government.
An intermediate solution has been advanced
Although the federal government has turned its back on the request of support organised by Heinz Taennler, however, there is one last card to play to safeguard the activities of crypto in the region of Zug.
The crypto-companies résigneront, therefore, a possibility of borrowing with a maximum value of 15 million swiss francs, which is estimated to be approximately $ 15.4 million. The refund will be allocated according to a share of 65 per cent coming from the central government and 35% of the local administration.
Note that the request for loan insurance must be filed from may 27, 2020 August 31, 2020 through the government platform. These requests will then be reviewed by the government and independent consultants hired by the Administration.
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Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting.
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