Crypto Startups In Switzerland Failed To Get Approval For Government Bailouts

News • 2020/05/27 • by Remitano

Zug is famous for being the crypto capital in Europe. Often dubbed as the Crypto Valley, many cryptocurrency and blockchain-related companies have chosen Zug as their main operation headquarters. However, the ongoing COVID-19 pandemic has hit them really hard. Many of these crypto companies in Switzerland are now facing very real bankruptcy threats.

The federal government in Switzerland had announced a $158.6 million credit opportunity to help fintech startups facing coronavirus issues, but apparently, the same government also rejected the bailout requests from the cryptocurrency sector. It’s believed that the Swiss government is not very optimistic about crypto's long-term future.

Despite the fact that the Swiss government refused to bailout crypto companies in the country, Zug finance director stated that a $15.4 million worth of temporary loan would still be available to help new startups in the Crypto Valley.

Some crypto enthusiasts in the country do not feel too optimistic with the government’s decision to leave out crypto companies. This decision was seen as a double standard because many fintech startups might not look too bright either, but they still receive a much bigger help from the government.