The burden of a lack of regulatory clarity in the cryptocurrency sector is coming to bear to some companies. As Lamassu relocates to Switzerland, there is a lot at stake in the places they leave behind. Notably, the firms cite lack of cooperation from the financial institutions.
Cryptophobia still prevalent
For instance, Lamassu wrote on its blog on Medium where it said it is difficult to maintain a bank account in other territories. Therefore, the reason for choosing Switzerland is due to the crypto-friendly nature of the country.
Interestingly, the irony is that Lamassu does not deal in cryptocurrency directly. Instead, the firm produces bitcoin ATMs which it then sells to bitcoin vendors. However, the fact that the word ‘Bitcoin’ appears on its website is enough to deny its banking services.
Notably, cryptophobia was on the rise last year after most of the cryptocurrencies collapsed, some by 80%. Further, some governments like China engaged in explicit campaigns to discourage any crypto-related activity within their jurisdiction. Interestingly, the banking sector is the best whip governments can use to smack seemingly rogue businesses. As such, many banking institutions are trying to distance themselves from the new industry.
Lucerne booms as Lamassu relocates to Switzerland
According to ATM Marketplace, Lamassu is the oldest manufacturer of Bitcoin ATMs. However, conditions in Portugal, Lamassu’s home country, are very undesirable. Notably, the firm has bitcoin 433 ATMs under its ambit all across the globe. Interestingly, while Switzerland has seven of the devices, there is no one in Portugal. This speaks to the anti-crypto environment prevalent in the country and is also why Lamassu relocates to Switzerland.
As per the company, Switzerland has very well defined bitcoin-focused regulations. This is no wonder Switzerland’s region of Lucerne is among the fastest growing tech hubs in the world. Dubbed the “Crypto Valley” of Europe, the region is gaining popularity even as the rest of the world castigates crypto.
Apart from Switzerland, Malta and Liechtenstein are also presenting themselves are crypto hubs. Unlike Switzerland where some banks are still anti-crypto, Malta has a national pro-crypto policy. In particular, the country obligates banks to work closely with the crypto sector to ensure the sector is liquid. As a result, Malta is home to a vast number of crypto-focused firms.