Zug hosts a number of well-known crypto projects including Xapo, ShapeShift and Ethereum foundation and management. Bitfinex, which is currently located in the British Virgin Islands is considering also London as an alternative but Switzerland is top on the list.
Bitfinex is planning to move its base from Hong Kong to Zug, Switzerland. The agency is in talks with Swiss authorities over the move to Europe but they are also considering London as an alternative.
Reportedly, Bitfinex officials have held several meetings with Switzerland’s State Secretariat for International Financial Affairs (SIF) on the new development or possibility. The exchange is also in contact with Johann Schneider-Ammann, head of Switzerland’s Federal Department of Economic Affairs, Education, and Research.
It is possible that the exit from Hong Kong will occur in a space of a week.
Bitfinex CEO Jean-Louis van der Velde said,
“We are looking for a new permanent home for Bitfinex and the parent company iFinex, where we want to merge the operations previously spread over several locations.”
It will become a public limited company in the new home.
Not only would the move from Asia to Europe establish the parent company IFinex Switzerland as a new AG or German for a public limited company, it could also see legal and finance as well as development and customer service departments shifting to Switzerland.
The exchange attracted criticism for its connection to Tether, which has an ailing relationship with its auditor. Thus from January amidst questions surrounding its reserves that back the cryptocurrency. Questions emerged on whether Tether tokens — the total of 2.3 billion USDT in circulation. However, they are backed by an equivalent amount of USD dollar as claimed.
Bitfinex received subpoenas from the US Commodity Futures Trading Commission (CFTC) alongside Tether. The exchange, which is second major crypto exchange says to be planning an exit from Hong Kong. Thus, says it will comply with all regulatory requirements in Switzerland. The CEO said they want to be transparent.
It is one of the largest crypto exchange in the world at fifth place. It is based in the British Virgin Islands.
Zug is a choice for many crypto companies as well, in addition to Bitfinex. Xapo, ShapeShift, Monetas, Etherisc and Ethereum’s foundation and management are located in the country.