The Canton of Zug, a region of Switzerland that has been famous for championing cryptocurrency-related developments, has made another landmark move towards adoption. The region, which many have dubbed “Crypto Valley,” announced this week that residents can now make crypto tax payments.
No More Denying Crypto’s Impact
According to a BNN Bloomberg report, crypto tax settlements will now be available to Crypto Valley residents and businesses interested in exploring them. Taxes will be payable in Bitcoin and Ether, and they will cover all payments up to 100,000 Swiss francs ($109,670).
The Canton of Zug currently plays home to about 127,0 00 people. The new crypto tax initiative was brought to life by a partnership between the region’s government and Bitcoin Suisse AG, a top crypto brokerage firm based there.
Niklas Nikolajsen, Bitcoin Suisse’s founder, explained to reporters that there is no longer any controversy about Bitcoin’s legitimacy and other related activity anymore. He added that the crypto market and its $500 billion worth of total assets has become mainstream, and governments will need to embrace them going forward.
To be fair, this isn’t a first for Switzerland. Bitcoin Suisse partnered with Zermatt, a municipality in the country’s southern canton of Valais, to make crypto tax payments a reality.
According to a press release at the time, Zermatt authorities had started accepting tax payments since January 28. By integrating Bitcoin Suisse, locals will be able to make direct crypto tax payments to the Zermatt Tax Office. Bitcoin Suisse has also allowed the Tax Office to convert all cryptocurrencies into Swiss francs seamlessly. The company’s primary task is to act as a payment processor.
Romy Biner-Hauser, Zermatt’s Mayor, explained at the time that the innovation aimed to help the city meet the surging demand for Bitcoin-based tax solutions from residents.
“An innovative, pioneering spirit is one of the trademarks of Zermatt, which is why we are happy to support residents in providing them with the solutions they require,” he explained.
For Zermatt, citizens can either pay taxes through an online portal or a point-of-sale tool at the Zermatt town all. Those who use the online portal method will need to apply at the Tax Office for a crypto payment solution.
The press release also explained that citizens of the municipality would either make their tax payments via an online portal or a point-of-sale tool that has been installed in the Zermatt town hall. However, those who choose to use the online portal will need to apply directly to the Tax Office for a crypto payment solution.
Zug Remains a Top crypto Hotspot
For now., it’s unclear how Zug plans to enforce the tax system. The new crypto tax payment shows a continued commitment from the region to develop crypto solutions and be a leader in the country’s ever-expanding space. Many had called the Crypto Valley experiment into question after the Swiss government turned down a 100-million-francs ($103 million) coronavirus bailout program for the country.
Cantonal Finance Director Heinz Taennler had called for contributions to the Valley’s blockchain companies, explaining that many would go bankrupt under the current conditions. While these firms’ state is still unclear, rolling out a crypto tax plan shows that the hope of cryptocurrencies is still alive in Zug.