Switzerland: enterprises Blockchain of the department of Zug can be found on the harness

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.

What do you think of the position severe of the swiss federal government in the face of the sector crypto? Let us know your thoughts in the comment section below.

(Be the FIRST to vote)

Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting.

The latest articles by Clementine (see all)

About the author

Jeremiah Faber

Jeremiah Faber

Jeremiah is an explorer by heart – both in the physical and the digital realm. A traveler, Jeremiah continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Jeremiah and through his business acumen has gained financial profits as well as fame in his business niche.

Do NOT follow this link or you will be banned from the site!