The Chinese mining giant Bitmain is moving to Europe.
Bitmain’s subsidiary Bitmain Switzerland will be based in Zug often referred to as the “crypto valley”, the Swiss newspaper Handelszeitung reports. Due to friendly jurisdiction and legal climate, in the region, there are more start-ups and companies associated with blockchain and crypto-currencies. The city of Zug, the capital of the government-supported association “Crypto Valley”, even allows its citizens to pay for municipal services using bitcoin.
According to the Zug commercial register, among the founders of Bitmain Switzerland is Cihan Wu, co-founder and chief executive of Bitmain.
What influenced the move?
The withdrawal of Bitmain’s capacity in Switzerland is connected with the limitations that the crypto-currency mining in China is subjected to. The Chinese government, led by the People’s Bank of China, is looking to stop the mining development process in the country, including by cutting down preferential terms in some provinces, such as tax exemptions and cheap hydropower tariffs for miners. Of course, this is not a direct ban on the part of the authorities, but it is clear that the government is gradually phasing out the local mining ecosystem, forcing companies like Bitmain to leave the country in search of a more friendly space.
At the moment, Bitmain has already established subsidiaries in the US, Singapore, and Israel. Switzerland is “one of the most progressive countries with high legislative stability,” the company’s speaker said in an interview for Handelszeitung, explaining the reason for choosing this particular country. He also said that the office in Zug will soon begin to hire city residents, as well as “actively interact” with the Office of Supervision of Financial Market Operations in Switzerland (FINMA) and other regulatory and governmental organizations.
The Beijing-based Bitmain office said:
“Bitmain Switzerland will play a key role in our global expansion.”