Zug, a place in Switzerland considered the “Crypto valley”, has been put on the business world map, thanks to the cryptocurrency community that has bloomed there. This community consists of crypto foundations, entrepreneurs, and community organizations. Even though the local administration has created a friendly environment in Zug for the crypto-ecosystem to flourish, they now fear the negative impact of bad press for ICO’s and US scrutiny.
Lamborghini Robin Hoods
According to a report by the financial times, despite the success in the crypto valley, some people believe that it may lead to unwanted attention. A Swiss finance specialist cited that they were eagerly waiting for Washington to call “Bern” asking them what they were doing back in Zug.
A local insider elaborated by saying that though they were different to banks, they were ultimately Robin-Hoods driving around in Lamborghinis. Apart from the show of wealth, the primary worry to most people is that it will lower the worldwide reputation of Zug.
“You can’t explain the outflows of money or the source of the money; you can’t ascertain if it is drug money or not,” said Andreas Hürlimann, a local Green party councilor.
The primary concern of the report is that some ICO could lead to a blunder that will lead to foreign pressure, only making things worse for the others. According to Jan Seffinga, a Deloitte based Blockchain expert, Switzerland has been under pressure to ensure their businesses are clean. It is considering that it took some good time to get Switzerland off the blacklists.
“With such ICOs, you have to build trust in the founders. You can’t achieve much if there is a misappropriation of the raised funds,” said Luzius Meisser, the founder of the Bitcoin Association in Switzerland. He added that the major risk could be the presence of a “black sheep”.